TINTON FALLS, N.J. - Commvault (NASDAQ: CVLT), a global provider of cyber resilience and data protection solutions, has announced its acquisition of Clumio, a company specializing in securing critical cloud data on Amazon (NASDAQ:AMZN) Web Services (AWS). This move aims to enhance Commvault's offerings for cyber resilience and recovery for AWS-based applications.
The acquisition, which is expected to close in early October 2024, will integrate Clumio's AWS expertise and innovative technologies with Commvault's platform. Clumio's solutions are designed to provide near-instant access to Amazon S3 data, crucial during time-sensitive recovery operations. The company has served notable clients such as Atlassian (NASDAQ:TEAM) and Duolingo.
Commvault's CEO, Sanjay Mirchandani, emphasized the importance of rapid business recovery following an outage or cyberattack. He stated that the addition of Clumio's talent and technology would advance Commvault's recovery offerings and strengthen its position as a leading SaaS provider for cyber resilience.
Poojan Kumar, co-founder of Clumio, expressed that the partnership with Commvault would allow Clumio's cloud-native offerings to reach AWS customers globally.
Financially, the transaction is not considered material to Commvault but is expected to be immediately accretive to its Annual Recurring Revenue (ARR) and revenue, with a positive impact on free cash flow within three quarters. Commvault will fund the purchase through cash on hand and maintains its fiscal second quarter 2025 earnings guidance, as announced on July 30, 2024.
BofA Securities and Hogan Lovells LLP provided financial and legal advisory services, respectively, to Commvault for this transaction.
The information in this article is based on a press release statement.
In other recent news, CommVault Systems (NASDAQ:CVLT) showcased robust growth in its first quarter for fiscal year 2025, with total revenue increasing by 13% to $225 million and annual recurring revenue (ARR) rising by 17% to $803 million. DA Davidson raised the price target for CommVault Systems to $175 from $170, maintaining a Buy rating, reflecting confidence in the company's ability to capitalize on heightened customer interest in its Cyber Resilience solutions. Guggenheim also reiterated a Buy rating, highlighting the company's potential to increase its market share in the cloud and on-premise data protection markets.
In recent developments, CommVault Systems confirmed the election of nine director nominees and the ratification of Ernst & Young LLP as the company’s independent public accountants for the fiscal year ending March 31, 2025. These results indicate a strong endorsement from the shareholders for the company's current leadership and strategic direction.
The company's free cash flow is anticipated to approach 25%, aligning with the Rule of 40, a metric used to assess a company's performance and growth potential. The increased price target from DA Davidson and the Buy rating from Guggenheim suggest an optimistic outlook for the company's future performance. These recent developments underline the company's strong execution and promising growth prospects.
InvestingPro Insights
Commvault (NASDAQ: CVLT) has recently made headlines with its strategic acquisition of Clumio, aiming to bolster its cyber resilience and data protection capabilities in the cloud. As investors and industry watchers consider the implications of this move, it is beneficial to look at some key financial metrics and insights that could inform their perspective.
InvestingPro data indicates that Commvault holds an impressive market capitalization of $6.68 billion, reflecting investor confidence in its market position and growth prospects. The company's gross profit margin stands at a robust 82.0% for the last twelve months as of Q1 2025, underscoring its ability to maintain profitability despite operating costs. Additionally, Commvault's revenue has shown a healthy growth of 10.32% over the same period, signaling a strong demand for its products and services.
From an investment standpoint, Commvault presents a mixed picture according to InvestingPro Tips. On one hand, the company holds more cash than debt on its balance sheet, providing it with financial flexibility and strength. On the other hand, analysts have expressed caution by revising their earnings estimates downwards for the upcoming period. This could be indicative of potential challenges ahead, despite the company's current financial health.
For those interested in a deeper dive into Commvault's financials and performance, InvestingPro offers additional insights. There are 17 more InvestingPro Tips available for Commvault, which can be accessed at https://www.investing.com/pro/CVLT. These tips offer a comprehensive analysis of the company's valuation multiples, profitability predictions, and stock price performance, among other factors, providing a valuable resource for making informed investment decisions.
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