Commvault Acquires Clumio, Expanding Data Backup Solutions

Commvault has acquired Clumio, a provider specializing in data backup solutions, to enhance its portfolio. This acquisition aims to strengthen Commvault's capabilities in data protection and cloud data management. By integrating Clumio’s technology, Commvault seeks to offer businesses more comprehensive and efficient backup solutions. This strategic move reflects Commvault's commitment to improving its services and maintaining a competitive edge in the data management market.

Commvault, a publicly traded company specializing in data protection and management software, announced on Tuesday its plans to acquire Clumio, a provider of data backup and recovery services, for an undisclosed amount.

The transaction is anticipated to finalize in early October. Commvault has stated that the acquisition is not expected to significantly impact its earnings and will be financed using available cash. Founded in 2017 by Poojan Kumar, Kaustubh Patil, and Woon Ho Jung, Clumio is based in Santa Clara and primarily focuses on safeguarding AWS workloads, though it began offering support for Microsoft 365 in 2020.

As of February, Clumio was achieving annual recurring revenue in the double-digit millions, marking a 400% increase from 2022 to 2023. The company has attracted clients like Atlassian, Duolingo, and LexisNexis and raised $261 million in venture capital from investors such as Index Ventures, NewView Capital, and Sutter Hill Ventures prior to the recent acquisition. “Our goal at Clumio was to create a platform capable of scaling rapidly to protect the world's largest and most complex data sets,” Kumar, who recently became Clumio’s chairman after resigning as CEO in June, stated. “Partnering with Commvault enables us to extend our cloud-native solutions to AWS customers globally.”

Commvault CEO Sanjay Mirchandani believes that Clumio will enhance Commvault’s existing “cyber resilience” tools for software developed on AWS. He noted that this acquisition allows Commvault to provide enterprises with more options for safeguarding and recovering their data and cloud-native applications. Regardless of dependence on AWS, the data backup and recovery market is extensive, which likely influenced Commvault’s decision to pursue this acquisition. Market analytics firm KBV Research reported that the global data backup and recovery sector was valued at $12.9 billion in 2023, with a compound annual growth rate of 10.9% from 2017 to last year.

Businesses are increasingly facing ransomware threats, alongside risks from data center disasters, such as the fire that affected France’s OVH in 2021, resulting in considerable data loss. Additionally, data management regulations like the EU AI Act are being enacted in various countries, many of which impose strict data retention and provenance requirements. “Swiftly returning to business after an outage or cyberattack is crucial for our customers,” Mirchandani emphasized in a press release. “The combination of Commvault’s top-tier cyber resilience capabilities with Clumio’s exceptional talent and technology enhances our recovery solutions, fortifies our platform, and solidifies our position as a leading software-as-a-service provider for cyber resilience.”

This announcement follows Commvault’s acquisition of cloud app resilience company Appranix earlier this year and comes after Commvault exceeded expectations in its Q1 results. Commvault was originally established in 1988 as a data management, backup, and recovery development group at Bell Labs. It was later designated a business unit of AT&T and became an independent entity in the late ’90s. Commvault went public in 2006 and relocated its headquarters from Oceanport to Tinton Falls, New Jersey. To date, Commvault has also acquired software-defined storage startup Hedvig and cybersecurity firm TrapX.

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Source: techcrunch‍