Hewlett Packard Enterprise acquires the Israeli company Zerto for $ 374 million in cash

Hewlett Packard Enterprise (HPE) acquires the Israeli company Zerto for $ 374 million in cash, the company announced. Zerto is engaged in the field of managing and protecting cloud data from ransomware, cyber attacks and unplanned shutdowns.
According to the announcement, Zareto is expected to generate an annual gross profit of $ 130 million for HPE in the sale of software, and about a third of that in the sale of services to HPE (+ 0.82% 14.7) as an ARR service. It is further written that Zareto's uniqueness is also its ability to assist in restoring the data to its original state seconds before the onset of the attack or interruption.
The company was founded in 2009 by the brothers Ziv and Oded Kedem, who were among those responsible for selling Kashya in 2006 to EMC for $ 150 million. The brothers also dealt with software duplication and protection in the software field. Zareto currently employs about 500 people, and has 9,000 customers. Over the years, the company has raised $ 163 million, including from Pitango, Battery, 83North, Clal Tech, Poalim Capital Markets and more. According to an industry source, the value is lower than the value in the last round of recruitment conducted last year.
About two years ago, Zareto began processes for an IPO on Wall Street, but withdrew from them. According to the same reports, the company has targeted a value of $ 600-500 million, so the current amount is lower. According to estimates, the return on investment for some investors was not alarming. Apparently the company realized that their performance was not enough to make an IPO or stay as an independent company. According to industry sources, the company has struggled to show a long-term sustainable business model, due to high costs.
HPE is a company that was split from HP and traded today at a value of $ 19 billion, after a 50% increase in the past year. HPE focuses on the business market with cloud, IT, services and software solutions, while HP Inc. focuses on printing. In the last four quarters, its revenues totaled $ 27.5 billion - a very high amount relative to its value. This is because the company's revenue is declining (7.5% last year).