Enterprise technology provider Hewlett Packard Enterprise (HPE) has deployed $374m in cash to acquire Zerto, a US-headquartered cloud management software developer backed by conglomerate Access Industries’ ClalTech subsidiary.
Founded in 2009, Zerto offers a software platform capable of providing data replication, data protection and high-growth disaster recovery, helping customers recover from ransomware and cyberattacks and bringing data back to its original state.
The company employs 500 staff and serves more than 9,000 customers, including 350 managed service providers. The acquisition is intended to further expand HPE’s GreenLake cloud services platform.
Zerto will operate under the HPE Storage division. Its management team will join HPE and report to senior vice-president and general manager Tom Black.
Antonio Neri, president and chief executive of HPE, said: “With the explosive growth of data at the edge and across hybrid environments, organisations today face significant complexity in managing and protecting their data.
“Zerto’s market-leading cloud data management and protection software expands HPE GreenLake cloud data services, allowing customers to protect their data and rapidly act on insights, from edge to cloud.”
The company has raised more than $160m of funding to date. It collected $53m in a June 2020 equity and debt round, the $33m equity portion including ClalTech and Poalim Capital Markets, the venture capital arm of financial services firm Bank Hapoalim.
RTP Ventures, 83North, IVP, Battery Ventures, Harmony Partners and US Venture Partners (USVP) also contributed to the equity portion of the round.
Zerto had secured $50m in a January 2016 series E round led by IVP and backed by ClalTech, RTP Ventures, 83North, Battery Ventures, Harmony Partners, USVP and Mark Leslie. It was subsequently boosted with additional $20m in funding provided by CRV and undisclosed existing investors five months later.
The company had already raised $13m in a 2013 series C round led by RTP Ventures that included Battery Ventures, Greylock and USVP, all three of which had previously contributed to a $24m series B round, which was led by USVP, in 2011.