Zix snaps up cloud backup and recovery firm CloudAlly
Zix has acquired CloudAlly in order to add backup solutions for products including Microsoft Office 365 and Google Workspace to its portfolio.
As the coronavirus pandemic will ensure many of us are working from home for the foreseeable future, enterprise companies have had to rapidly analyze their infrastructure, technological and security postures, and remote access capabilities.
With such an unexpected and rapid transition to remote working for many employees, cloud services, systems, and reliable backup options are important to keep operations as stable as possible at least until the crisis ends -- and to this end, Zix has decided to break into the backup market.
Announced on Monday, the email security and data loss prevention specialist said the acquisition of the company "will provide our partners and customers with another robust tool to drive further cloud adoption in their digital transformation journeys."
The deal has been financed through borrowing, in which an existing senior secured term loan led by Truist Bank has been increased by $35 million, for a total of $212.2 million. The maturity date of the loan is February 20, 2023.
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However, some of the loan will be used to repay credit draws, and so Zix has been left with $25 million to finance the deal.
Founded in 2011, Israeli firm CloudAlly is a developer of software-as-a-service (SaaS) cloud backup and recovery solutions suitable for the enterprise market. These include ISO 27001 certified and GDPR/HIPAA compliant backup systems for popular products including Microsoft Office 365, Google Workspace, OneDrive, Salesforce, and Box.
The company accounts for over 5,000 enterprise clients.
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"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," commented David Wagner, Zix CEO. "With CloudAlly, we can greatly enhance our Secure Cloud platform and also mitigate concerns around ransomware which has become a large industry focus."
Clairfield International acted as Zix's financial advisor.
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