StorageCraft is set to receive a $US187 million investment from private equity firm, TA Associates.
The two organisations have signed a definitive agreement for TA to invest in the backup and disaster recovery software vendor.
Additional terms of the transaction were not disclosed but the investment is expected to close in late January. In relation to the deal, Matt Medeiros has joined StorageCraft as chairman and chief executive.
Medeiros joins StorageCraft from Dell SonicWALL, where he served as general manager of security software. Prior to Dell’s acquisition of SonicWALL in 2012, he was chief executive and president of the company, a position he held since joining in 2003.
TA managing director, Jonathan Meeks, will join the StorageCraft board as part of the deal and said the equity firm was excited about this investment and to welcome a highly credentialed technology executive like Medeiros to the company.
“With its award-winning business continuity and disaster recovery product suite, StorageCraft has had notable success, directly and indirectly serving over 10,000 MSPs. In keeping with TA’s long-established investment approach, we will collaborate closely with Matt and his team to further grow the company,” Meeks added.
Medeiros said the vendor could see a number of avenues to expand its product offering and to grow the client base, particularly in international markets, and said he anticipates TA will play a central role in these efforts.
“We will continue to aim to build best-in-class products and programs specifically designed for channel partners,” he added.
Primarily serving small to medium-sized businesses, StorageCraft provides backup, disaster recovery, system migration, virtualisation and data protection solutions for servers, desktops and laptops on Windows and Linux platforms.
Gartner valued the business continuity/disaster recovery market at $US5.2 billion in 2014, and predicts it will reach $US7 billion by 2019, a 6 per cent compound annual growth rate.
Goodwin Procter is providing legal counsel services to TA Associates. Holland & Hart LLP is serving as legal counsel and Boston Meridian Partners is providing advisory services to StorageCraft throughout the process.