Cloud data protection vendor Carbonite is moving upscale into the midsize business market with an acquisition of the disaster recovery and business continuity business of EVault from Seagate.
Boston-based Carbonite, known primarily as a provider of cloud-based data protection services to consumers and small businesses, said Wednesday that it has signed an agreement to purchase most of EVault's operations for $14 million in cash, in a deal expected to close in January.
With the deal, Carbonite will get the EVault Cloud Backup and Recovery software-only solution for server backups; the EVault Backup and Recovery Appliance, which brings the EVault to an appliance sitting at a customer's site; and EVault Cloud Resiliency Services for managing failovers into the cloud.
It's an exciting acquisition, said David Levenson, owner of Creative Computer Consulting, a Framingham, Mass.-based managed services provider and Carbonite channel partner.
Carbonite has been a great company to work with from a channel perspective, and its acquisition of EVault will make it even stronger, Levenson told CRN.
"If you don't grow, you won't make it in the future," he said. "This is exciting news for Carbonite. They know, if they want to be somebody, they need to acquire the best."
For Carbonite, the EVault acquisition is the best way to continue moving away from its consumer roots to become a major provider of data protection services to businesses, said Mohamad Ali, Carbonite president and CEO.
Carbonite was a pioneer in the online backup business when it started about 10 years ago. The company entered the small business cloud-based data protection business about three years ago, and now gets 37 percent of its revenue from businesses with up to 100 people, Ali said. That part of the business is growing about 30 percent year to year, he said.
"We have been looking at expanding to service customers with over 100 employees," Ali said. "EVault started with a focus on SMBs with up to 500 employees. It's perfect for us. We have a similar model, putting software and appliances on the customer site."
However, EVault also brings a sophistication in its offerings that would take Carbonite years to develop on its own, Ali said.