Commvault Accelerates Cyber Resilience Capabilities for AWS with Acquisition of Clumio

Rhea-AI Summary

Commvault, a leading provider of cyber resilience and data protection solutions, has announced the acquisition of Clumio, a technology leader in data protection for critical cloud data in AWS. This strategic move aims to enhance Commvault's cyber resilience capabilities for cloud-first organizations, particularly those using AWS. Key points:

- The acquisition leverages Clumio's AWS offerings to provide cyber resilience for next-generation applications.
- Clumio's innovations include near-instant access to Amazon S3 data during critical recovery operations.
- The deal is expected to close in early October 2024 and be immediately accretive to ARR and revenue.
- The purchase price is not material to Commvault and will be funded with cash on hand.
- Commvault reiterates its fiscal second quarter 2025 earnings guidance.

This acquisition strengthens Commvault's position as a leading SaaS provider for cyber resilience in the multi-cloud era.

Positive

• Acquisition of Clumio enhances Commvault's cyber resilience capabilities for AWS
• Immediate accretion to ARR and revenue expected
• Accretive to free cash flow within the next three quarters
• Strengthens Commvault's position as a leading SaaS provider for cyber resilience
• Expands Commvault's offerings for cloud-native applications and Amazon S3 data protection

Negative

• None.

Insights

Financial Analyst

Commvault's acquisition of Clumio is a strategic move that strengthens its position in the cloud-based cyber resilience market, particularly for AWS customers. This deal is likely to be positive for Commvault's financial outlook for several reasons:

• Immediate ARR and revenue accretion, with free cash flow accretion expected within three quarters.
• Expansion of Commvault's product offerings, potentially leading to increased market share and customer base.
• Enhanced capabilities in protecting critical cloud data, especially in Amazon S3, which is increasingly important for AI development.

The fact that the acquisition is not material to Commvault's financials and will be funded with cash on hand suggests a low-risk transaction with potential for high returns. The reiteration of Q2 FY2025 guidance indicates confidence in the deal's integration and near-term performance. Investors should monitor the integration process and any synergies realized post-acquisition, as well as the impact on Commvault's competitive position in the cloud data protection market.

Tech Expert

This acquisition significantly bolsters Commvault's technological capabilities in the AWS ecosystem. Clumio's innovations in Amazon S3 data protection, particularly their near-instant recovery technology, address a critical need in the market. As organizations increasingly rely on cloud storage for AI development and other critical applications, robust and rapid data recovery becomes paramount.

The integration of Clumio's technology into Commvault's platform could lead to:

• Enhanced recovery speed and efficiency for AWS customers
• Improved protection for data lakes and warehouses
• Stronger competitive positioning against other cloud data protection providers

This move aligns with the industry trend towards more specialized, cloud-native data protection solutions. It's particularly noteworthy given the growing importance of AI workloads in AWS, which often require massive datasets stored in S3. Commvault's ability to offer advanced protection for these critical assets could be a significant differentiator in the market.

Commvault provides cloud-first organizations with greater choice and flexibility to protect and recover data and cloud-native applications in a multi-cloud era

TINTON FALLS, N.J., Sept. 24, 2024 /PRNewswire/ -- Commvault, a leading provider of cyber resilience and data protection solutions for the hybrid cloud, announced it will acquire Clumio, a technology leader in data protection for critical cloud data in AWS.

This transaction enables Commvault to leverage Clumio's AWS offerings to provide cyber resilience to next generation applications built on AWS. Clumio serves a wide range of customers including Atlassian, Cox Automotive, Duolingo, and LexisNexis.

More and more organizations are relying on Amazon S3 as their de facto storage offering, including for AI development in the cloud. Clumio has brought groundbreaking innovations to market in this area, including technologies that enable customers to have near-instant access to their Amazon S3 data during a time-critical recovery operation.

"In the event of an outage or cyberattack, rapidly getting back to business is paramount to our customers," said Commvault CEO Sanjay Mirchandani. "Combining Commvault's industry-leading cyber resilience capabilities with Clumio's exceptional talent, technology, and AWS expertise advances our recovery offerings, strengthens our platform, and reinforces our position as a leading SaaS provider for cyber resilience."  

"At Clumio, our vision was to build a platform that could scale quickly to protect the world's largest and most complex data sets, including data lakes, warehouses, and other business-critical data," said Poojan Kumar, co-founder of Clumio. "Joining hands with Commvault allows us to get our cloud-native offerings to AWS customers on a global scale."

The asset acquisition is expected to close in early October 2024, and be immediately accretive to ARR and revenue, and accretive to free cash flow within the next three quarters. The purchase price is not material to Commvault and will be funded with cash on hand. Commvault reiterates the fiscal second quarter 2025 earnings guidance previously announced on July 30, 2024.

BofA Securities served as a financial advisor and Hogan Lovells LLP served as legal counsel to Commvault in connection with the transaction.

About Commvault
Commvault (NASDAQ: CVLT) is the gold standard in cyber resilience, helping more than 100,000 organizations keep data safe and businesses resilient and moving forward. Today, Commvault offers the only cyber resilience platform that combines the best data security and rapid recovery at enterprise scale across any workload, anywhere—at the lowest TCO.

About Clumio
Clumio helps organizations simplify data protection in AWS. Its secure air-gapped SaaS backup solution enables organizations to achieve ransomware protection, backup and restore data in minutes, and gain better visibility to optimize cloud storage costs.

Safe Harbor Statement
This press release contains forward-looking statements, including statements regarding the expected benefits of the acquisition and financial projections, which are subject to risks and uncertainties. For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item 1A. Risk Factors" in our annual report on Form 10-K and "Item 1A. Risk Factors" in our most recent quarterly report on Form 10-Q. Statements regarding Commvault's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.

View original content to download multimedia:https://www.prnewswire.com/news-releases/commvault-accelerates-cyber-resilience-capabilities-for-aws-with-acquisition-of-clumio-302257641.html

SOURCE COMMVAULT

FAQ

What is the purpose of Commvault's acquisition of Clumio?

Commvault is acquiring Clumio to accelerate its cyber resilience capabilities for AWS, providing greater choice and flexibility for cloud-first organizations to protect and recover data and cloud-native applications in a multi-cloud era.

When is the Commvault-Clumio acquisition expected to close?

The acquisition is expected to close in early October 2024.

How will the Clumio acquisition affect Commvault's financials (CVLT)?

The acquisition is expected to be immediately accretive to ARR and revenue for Commvault (CVLT), and accretive to free cash flow within the next three quarters. The purchase price is not material to Commvault and will be funded with cash on hand.

What are the key innovations Clumio brings to Commvault's offerings?

Clumio brings groundbreaking innovations in Amazon S3 data protection, including technologies that enable near-instant access to Amazon S3 data during time-critical recovery operations.

Will the Clumio acquisition affect Commvault's (CVLT) fiscal Q2 2025 earnings guidance?

No, Commvault (CVLT) reiterates its fiscal second quarter 2025 earnings guidance previously announced on July 30, 2024, indicating the acquisition does not change their financial outlook.