Cloud Software Group Announces Strategic Acquisition of Arctera
Cloud Software Group has formalized a definitive agreement to acquire Arctera, a renowned provider of data management and protection software. This acquisition will be executed through funds linked with the investment powerhouse Carlyle. Financial particulars surrounding the transaction remain undisclosed.
The consummation of this acquisition is anticipated to occur in the fourth quarter of 2025, contingent upon regulatory approvals and standard closing stipulations. Post-acquisition, Arctera will function autonomously as a distinct business unit within Cloud Software Group.
Established in 2024, Arctera emerged from the strategic amalgamation of Veritas’ Enterprise Data Protection division and Cohesity. The entity specializes in data protection and compliance management solutions, offering a suite of esteemed products including InfoScale, Insight, and Backup Exec.
Headquartered in Pleasanton, California, Arctera boasts an impressive annual revenue exceeding $400 million and an adjusted EBITDA margin surpassing 40 percent. Reports by TechTarget elucidate that Arctera serves a diverse clientele, encompassing tens of thousands of global customers, among which a substantial portion includes Fortune 100 corporations.
Acquisition Aligns with Strategic Vision
As asserted by CEO Tom Krause, this acquisition significantly aligns with Cloud Software Group’s overarching strategy, which emphasizes growth through the procurement of entities specializing in mission-critical software for both enterprises and governmental institutions. Krause highlighted the company’s proficient track record in enhancing profitability and long-term viability through prior acquisitions, citing notable integrations such as Citrix and TIBCO.
The CEO further described Arctera’s offerings as synergistic with Cloud Software Group’s existing portfolio, indicating a pre-existing interest in Arctera and the acquisition’s potential to augment their joint service catalog.
In a statement, Arctera’s CEO Lawrence Wong articulated that the collaboration with Cloud Software Group would empower his organization to deliver superior support to clients in managing their data ecosystems. Wong emphasized that Arctera’s trio of product lines remains steadfast in addressing intricate data challenges.
Recently reported by TechTarget, Arctera has fortified its Insight platform, integrating new capabilities for monitoring and safeguarding large language models, a timely response to the escalating focus on artificial intelligence and data privacy.
Cloud Software Group itself was formed in 2022, following the merger of Citrix Systems and Tibco Software—an initiative underpinned by the financial backing of Vista Equity Partners and Evergreen Coast Capital. Since its inception, the portfolio has expanded to include reputable brands such as Information Builders, Spotfire, and Jaspersoft.
Currently, the company caters to over 100 million registered users globally. However, in 2023, the organization undertook significant workforce reductions as part of a strategic recalibration aimed at concentrating on larger enterprise clientele.
Source link: Techzine.eu.
