Target Information

Veeam® Software is recognized as the global leader in data resilience, boasting a remarkable market share and an expanded shareholder base following a recent $2 billion secondary offering, which valued the company at $15 billion. This strategic transaction, facilitated by TPG with participation from well-regarded investors such as Temasek and Neuberger Berman Capital Solutions, underscores Veeam's robust position within the fast-evolving data resilience market.

As the demand for effective data protection increases, particularly in light of the escalating threats of outages and cyber incidents, Veeam has emerged as a trusted partner for over 550,000 organizations, including 77% of the Fortune 500. By providing superior data resilience solutions, Veeam ensures operational continuity for its clients amidst the complexities of contemporary IT environments.

Industry Overview

The data resilience industry has seen consistent growth, fueled by the urgent need for businesses to protect critical data assets from emerging cyber threats and regulatory pressures. In the United States, the market is projected to expand significantly, driven by increasing reliance on cloud services, growing ransomware incidents, and heightened awareness of data governance practices among enterprises.

The digital landscape continues to evolve rapidly, as organizations prioritize data security and resilience in their operational strategies. As cyber threats become more sophisticated, companies are investing heavily in backup and recovery solutions, highlighting the vital importance of partnering with providers that offer comprehensive protection against data loss.

Moreover, the adoption of cloud technologies is reshaping the data resilience market, with businesses seeking flexible, scalable solutions. Veeam's innovative offerings, including its cloud-first strategy, position the company as a frontrunner in meeting these complex demands from today's enterprise customers.

With the increasing complexity of IT environments, the need for tailored data solutions has grown. Veeam distinguishes itself through its versatile approach, delivering both as-a-service options and self-managed software to cater to a diverse customer base, from small businesses to large enterprises.

Rationale Behind the Deal

This secondary offering not only expands Veeam's shareholder base but also strengthens its financial foundation, allowing the company to explore strategic partnerships and acquisitions more flexibly. The capital raised through this deal is expected to accelerate Veeam's innovative initiatives in security, cloud, and AI-driven solutions, reinforcing its global leadership in data resilience.

The substantial backing from reputable investors further affirms confidence in Veeam's strategy and market position. By channeling resources toward enhancing product offerings and expanding market share, Veeam is well-positioned to capitalize on the rapidly growing demand for advanced data protection solutions.

Information About the Investor

TPG is a prominent global alternative asset management firm with over $239 billion in assets under management. Since its inception in 1992, TPG has cultivated an outstanding reputation for investing in diverse sectors, including technology and cybersecurity. Their collaborative approach emphasizes innovation and inclusion, providing strategic capital solutions to companies poised for growth.

TPG’s investment in Veeam is channeled through its TPG Tech Adjacencies and Hybrid Solutions strategies, indicating a focused commitment to driving technological advancement within the portfolio. TPG's history of backing transformative companies positions it as an ideal partner for Veeam as it embarks on its next phase of expansion.

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This deal represents a significant milestone for Veeam, reflecting a confident market outlook based on its established leadership in the data resilience sector. The investment will empower Veeam to enhance its capabilities and respond to the growing demand for innovative data protection solutions, which is crucial in an era defined by increasing digital transformation.

Experts believe that Veeam's strategic focus on cloud and AI-driven innovations will serve to reinforce its competitive advantage. With comprehensive solutions that adapt to business needs, Veeam is set to maintain its strong market presence and address the complexities of modern data management.

As the risk landscape broadens, Veeam’s commitment to evolving its service offerings positions it favorably within the industry. The company’s forward-looking approach and collaborative investment partners suggest that it is not only a viable investment now but may enhance its market share and customer loyalty in the future.

In summary, the deal underscores the importance of data resilience in today’s digital-first environment. Veeam’s impressive growth metrics and the strategic input from key investors signal a promising future, making it a compelling opportunity for those interested in the technology investment landscape.

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