- Commvault announced it is acquiring software-defined storage (SDS) company Hedvig for total consideration of $225 million. These are the details behind the deal.
Commvault — a leading provider of software for the management of data across cloud and on-premises environments — announced it entered into a definitive agreement to acquire software-defined storage (SDS) company Hedvig for total consideration of $225 million — which includes the purchase price and ongoing employee retention.
Gartner is expecting that the software-defined storage (SDS) instantiations of vendor storage OSs running in the cloud will become the dominant method of building multi cloud storage infrastructures by 2023. And this move to cloud and multi cloud environments — together with cloud native applications — is driving competitive advantage for companies of all sizes yet the acceleration of data fragmentation is negatively impacting business outcomes. And this rapid data growth — generated from a variety of sources stored both within on-premises environments and in the cloud — will continue to create significant governance, security and management challenges.
“Multi cloud data management is a hard problem for customers to solve, and that translates to value. Commvault’s acquisition of Hedvig is an astute strategic move that allows Commvault to differentiate and enhance its offerings – which broadens its addressable market. We believe this increases the value Commvault can bring to these increasingly complex customer problems,” said IDC president Crawford Del Prete.
Commvault has been evolving its portfolio to help thousands of long-standing customers of all sizes globally, protect, manage and use their data more effectively. And this is demonstrated by the 600-plus petabytes of data managed by Commvault software in the cloud today.
“This acquisition demonstrates how Commvault is leading the way towards the intersection of storage and data management,” added Commvault CEO Sanjay Mirchandani. “We believe joining Hedvig’s innovative software-defined storage capabilities with Commvault’s industry-leading data protection reduces fragmentation and leapfrogs other solutions in the market.”
Launched in 2012 by Avinash Lakshman (the inventor of Apache Cassandra and one of the inventors of Amazon Dynamo), Hedvig is driving significant operational efficiency, addressing the data sovereignty problems stemming from data governance laws, and enabling hybrid cloud and multi cloud capabilities natively. And operational efficiency is achieved via complete protocol consolidation (block, file and object storage) on a single platform.
“Being completely software based, the Hedvig platform can span multiple data centers across multiple physical geographies including disparate cloud environments,” explained Hedvig CEO Avinash Lakshman. “This may be the most comprehensive solution ever unleashed into enterprise data centers and public cloud environments.”
The proposed acquisition is expected to close in Commvault’s fiscal third quarter subject to certain closing conditions. And the transaction is expected to be slightly dilutive to Commvault’s FY’20 non-GAAP EPS and accretive to FY’21 non-GAAP EPS.
