Software Maker Veeam’s Valuation Triples on $2 Billion Private Share Sale
Investors in the data security and recovery specialist sold their shares to a TPG-led group
Insight Partners-owned Veeam Software, whose products are used to protect corporate data systems from cyber threats, has taken on additional investors through a $2 billion share sale that generated cash for existing backers.
Majority owner Insight and other investors sold the shares in Kirkland, Wash.-based Veeam to a group led by private-equity firm TPG, according to a statement. Singapore sovereign-wealth investor Temasek Holdings and investment manager Neuberger Berman in New York also purchased shares in the transaction, along with other new investors.
The secondary share sale valued Veeam at $15 billion, according to the statement. This represents a threefold increase in value from when Insight first acquired the company in 2020 at a valuation of about $5 billion.
“It helps to have top-tier, blue-chip investors in the event you want to do something major,” said Veeam Chief Executive Anand Eswaran, including options such as a public listing or acquisitions.
Veeam is already the largest business by market share in the so-called data resilience sector, according to market research firm International Data Corp.
The company serves about 550,000 customers globally, including governments and large and small businesses, with software geared toward helping businesses back up, recover, transport, secure and analyze their data.
Veeam’s annualized recurring revenue rose 18% to $1.7 billion as of September compared with a year earlier. Known as ARR, the metric represents contractually guaranteed income from regular operations and is prized by investors for its predictability.
Veeam’s immediate strategic goals include expanding its offering for cloud-computing applications—software that sits on an external server rather than on site—as well as determining how it can use artificial-intelligence technology to increase the scope and effectiveness of its products, Eswaran said.
Veeam is experiencing strong tailwinds in the form of rising demand and an expanding market. IDC said the total data resilience market grew 7.1% last year to $11.8 billion, even as other technology segments struggled.
An IDC survey of corporate technology decision makers found that they considered investing in data recovery and protection a main priority this year and into 2025, beating out spending on investment areas such as infrastructure service management and operating systems.
“AI has been very good for the [data resilience] industry. As with any emerging tech with such power, it has also democratized and lowered the threshold of sophistication for bad actors,” Eswaran said.
Insight, a technology investor with about $80 billion under management, remains Veeam’s largest shareholder. Investment bank Morgan Stanley advised on the share sale, which is set to close in the first quarter.