U.S. private equity firm Insight Partners has sold a $2 billion stake in cloud data company Veeam Software in a secondary sale valuing the firm at $15 billion, it said on Wednesday.
Veeam, a former Swiss firm now headquartered in Kirkland, Washington, provides backup for critical information on remote servers. It has tripled its valuation since January 2020, when it was acquired by Insight Partners for $5 billion.
The transaction was led by TPG with participation from Temasek, Neuberger Berman Capital Solutions and other investors.
As of September, Veeam, which provides backups for Amazon Web Services and Microsoft Azure, generated $1.7 billion in annualized recurring revenue, up 18% year on year, the company said. Two-thirds of its revenue comes from subscriptions.
CEO Anand Eswaran said the secondary transaction allows the company to diversify its investor base, and provides liquidity and capital source for future M&A.
The company aims at an eventual initial public offering (IPO) but no specific timeline has been discussed, according to Eswaran.
“We don’t have to go public to raise money or liquidity. But being in the public markets is a good thing…There’s no urgency, but it’s clearly something we will do, and this secondary and inviting these blue-chip investors to be part of our journey is a key part of that next milestone,” Eswaran said.
Insight Partners remains Veeam’s largest shareholder.
The deal highlights investor interest in enterprise software companies providing data infrastructure backup and security. Secondary share sales also typically allow early investors and employees to cash out some of their stock holdings.
Reuters
