HPE Acquires Zerto For $374 Million

Summer is here, it’s hot, and the big companies are still swallowing up the smaller guys. In this case, Hewlett Packard Enterprise (HPE) announced that it has entered a definitive agreement to acquire Zerto. This deal is reported to be for about $374 million. Zerto will be integrated into HPE GreenLake.

Summer is here, it’s hot, and the big companies are still swallowing up the smaller guys. In this case, Hewlett Packard Enterprise (HPE) announced that it has entered a definitive agreement to acquire Zerto. This deal is reported to be for about $374 million. Zerto will be integrated into HPE GreenLake.

Zerto, What it is, what it does

While we’ve been writing about Zerto for the last six years or so, the company has actually been around since 2009. In 2011 they released their first product with Zerto Virtual Replication. Zerto has been in the data protection game ever since. Now their main focus is the Zerto Platform that focuses on disaster recovery and data protection across on-prem, hybrid, and multi-cloud environments. This is all managed, simply, through the cloud. A couple of years back we took a fairly deep dive reviewing Zerto 7.5.

Why Zerto is a good fit with HPE GreenLake

Data protection as-a-Service makes Zerto a good fit with HPE GreenLake. HPE has been pumping up GreenLake with various new cloud offerings over the last few years. HPE GreenLake was launched in 2017 as a managed IT-as-a-Service offering. As the industry as a whole is looking more and more to aaS and cloud/subscription-based usage, it makes sense for the larger companies to follow suit. Zerto will expand what GreenLake has to offer.

Some of the details of the deal include Zerto’s management team joining HPE. As stated, the deal is valued at $374 million, in cash no less. HPE will fund the acquisition through cash on its balance sheet. According to the company, the transaction is expected to contribute more than $130 million in run-rate revenue at software gross margins. Approximately one-third of the revenue is expected to contribute to HPE’s aaS Annualized Revenue Run-Rate. The transaction is expected to close in the fourth quarter of HPE’s fiscal year.

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