On July 1, 2021, Hewlett Packard Enterprise announced that it has entered into a definitive agreement to acquire Zerto, an industry leader in cloud data management and protection, in a transaction valued at $374 million. This acquisition expands HPE GreenLake and continues to deliver on HPE Storage’s shift to a cloud-native, software-defined data services business.
On Sept. 1, 2021, Hewlett Packard Enterprise announced that it has completed the acquisition of Zerto.
“Data is now the most critical asset,” said Antonio Neri, President and CEO, HPE. “With the explosive growth of data at the edge and across hybrid environments, organizations 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.”
HPE is acquiring Zerto for $374 million in cash. The company plans to fund the acquisition through cash on its balance sheet. 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 (ARR). The acquisition is also expected to be accretive to non-GAAP operating profit and earnings starting in FY 2023.
Zerto’s management team is joining the HPE family following the close of the transaction, which is expected to occur in the fourth quarter of HPE’s fiscal year 2021, subject to regulatory approvals and other customary closing conditions. After the transaction closes, Zerto will be organized under HPE Storage, reporting to Tom Black, Senior Vice President and General Manager.
