Zix Corporation, a security technology company, has acquired CloudAlly to add backup solutions for the products that include Microsoft Office 365 and Google Workspace. It is a recent apt example of digital transformation.
These actions are intended to support the COVID-19 work environment and prepare for the unseen future. Enterprises have to rapidly analyze their infrastructure, technological and security postures, and remote access capabilities. The pandemic has brought an unexpected and rapid transition to remote working for many employees.
In such a condition, it is required to own well-managed cloud services, systems, and reliable backup options to undertake smooth operations until the crisis ends. Therefore, Zix arrived with a potent solution to the problem.
“Our acquisition of CloudAlly greatly enhances the Zix suite of solutions and will provide our partners and customers with another robust tool to drive further cloud adoption in their digital transformation journeys,” said David Wagner, Zix’s Chief Executive Officer.
“With CloudAlly, we can now directly address the growing demand we’ve seen from partners, customers and prospects alike for an enterprise-grade cloud backup offering with a best-in-class solution. In fact, through a recent survey of our MSP partner base, we found that at least 45% confirmed they would purchase a backup solution from Zix if it became available. Cloud backup being our number one product adjacency, coupled with our proven success attaching additional products to our customer base, gives us a high level of confidence that we can leverage CloudAlly to become a greater business than just the sum of its parts. With CloudAlly, we can greatly enhance our Secure Cloud platform and also mitigate concerns around ransomware which has become a large industry focus. With this transaction completed, Zix will be better positioned for profitable growth, higher attach rates, scaled customer retention, and with the opportunity to capture a greater share of the multi-billion-dollar business communications market.”
Clairfield International played the role of Zix’s financial advisor.
Financial details
The deal has been financed through borrowing. An existing senior position secured a term loan from Truist Bank at an additional USD 35 million, bringing the total outstanding amount of term loan to USD 212 million.
The loan maturity date is February 20, 2023. Out of USD 35 million, the company will be left with USD 25 million to finance the deal. The sum of USD 10 million will be used to repay the credit draws.
About CloudAlly
CloudAlly was founded in 2011 and provides SaaS backup and recovery solutions. It assists companies like Microsoft 365, Google Workspace, Dropbox, Salesforce, and Box SaaS data with automated cloud-to-cloud backup, retention, and easy recovery of data.
Additionally, it offers unlimited storage and tier-one customer service to users across the world.