HPE Acquires Cloud Security Company Zerto for $374 Million

HPE has signed a deal to buy Zerto, a pioneer in cloud data management and protection, for the amount of $374 million. This acquisition expands the HPE GreenLake cloud offering and continues to deliver on HPE Storage’s shift to a cloud-native, software-defined data services business.


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Zerto, which was founded in 2009 and has offices in Herzliya, Israel, and Boston, serves over 9,000 clients, including corporations and 350 managed service providers.

Disaster recovery, backup, and data mobility are all included in Zerto’s journal-based continuous data protection (CDP) technology, which covers on-premises, hybrid, and multi-cloud settings.

Photo Ziv Kedem, CEO of Zerto
“The HPE GreenLake edge-to-cloud strategy and strong leadership is a perfect match for Zerto,” said Ziv Kedem, CEO of Zerto.

Zerto would help clients recover from ransomware, cyberattacks, and other unplanned downtime in minutes, restoring data to the condition it was in only seconds before the attack or disruption. Data is readily replicated and migrated between VMware vSphere and Microsoft Hyper-V systems, as well as directly to AWS and Microsoft Azure, using Zerto.

HPE is paying $374 million in cash for Zerto. The vendor intends to pay for the transaction with cash on hand. At software gross margins, the purchase is projected to generate more than $130 million in annual revenue.

“Data is now the most critical asset,” said Antonio Neri, President and CEO of 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’s Cloud Data Services and Market Reach

Zerto provides its data replication, security, and disaster recovery as a service (DRaaS) solutions globally.

“The HPE GreenLake edge-to-cloud strategy and strong leadership is a perfect match for Zerto,” said Ziv Kedem, CEO of Zerto. “Coupling Zerto’s industry-leading cloud data management and protection software platform with HPE’s cloud data services and go-to-market reach will offer an unparalleled experience for our collective customers and partners.”

Photo Tom Black, Senior Vice President and General Manager of HPE Storage
“Zerto further positions HPE to become the leader in data management and protection through HPE GreenLake cloud services,” said Tom Black, Senior Vice President and General Manager of HPE Storage.

The purchase of Zerto would hasten HPE’s R&D talent pipeline as well as the company’s transformation into a “premier” data management and protection supplier to clients. HPE’s worldwide footprint, distribution channel, and installed base are expected to help Zerto. HPE and Zerto combine their technology, cloud operations, and go-to-market skills to simplify cloud data management and protection for clients’ edge-to-cloud strategies.

“With data underpinning digital transformation, customers must manage, protect, and mobilize their data,” said Tom Black, Senior Vice President and General Manager of HPE Storage. “Customers continue to face significant issues managing data complexity across hybrid and multi-cloud environments. Zerto further positions HPE to help solve these customer challenges and become the leader in data management and protection through HPE GreenLake cloud services.”

Following the conclusion of the deal, which is scheduled to occur in the fourth quarter of HPE’s fiscal year 2021, subject to regulatory clearances and other normal closing conditions, Zerto’s management team will join the HPE family. Zerto will be structured under HPE Storage when the deal closes, reporting to Tom Black, Senior Vice President and General Manager.

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