Veeam expands shareholder base with $2bn secondary offering

The funding will be directed towards boosting Veeam’s strategic partnerships, buyouts and capitalisation opportunities

Data security vendor Veeam Software has announced an expansion of its shareholder base in a $2bn (£1.57bn) secondary offering, bringing the company to a $15bn valuation.

The round was led by TPG, followed by Temasek, Neuberger Berman Capital Solutions, and other investors.

As of September, the Insight Partners-owned company has generated $1.7bn in year-on-year recurring revenue (ARR), with a strong 18 per cent growth rate, including 31 per cent year-on-year increase for the software + SaaS subscription business and 30 per cent EBITDA margins.

This revenue rise comes on the heels of its acquisition of Coveware in April, as well as in cloud and AI-driven innovation.

Anand Eswaran, CEO of Veeam, told CRN US that this new funding be used to “help Veeam someday do its own IPO.”

“It’s important to have such investors in case we want to do something transformative, not just a large M&A, but massively transformative,” he added.

Insight Partners, who owns the company, remains the largest shareholder.

Founded in 2006, Veeam’s mission is to “safeguard the digital world.”

The vendor currently powers data resilience for over 550,000 organisations across the world, such as governments, large enterprises, and SMBs.

As data is now “far more valuable than oil,” the company’s goal is to protect such assets by delivering data backup and data recovery, data portability, data security, and data intelligence.

The Veeam data platform’s goal is to deliver strong data security, rapid recovery and hybrid cloud protection; including advanced ransomware defences to help businesses mitigate risks and recover rapidly.

The Veeam Data Cloud Vault, introduced in March 2024, intends to provide customers with secure, cloud-based backup and always-immutable storage options for peace of mind.

“Veeam understands the trend toward migration to the cloud and is poised to gain share with their new cloud-first offerings,” said Arun Agarwal, partner at TPG.

“Veeam’s comprehensive solution and expansive market reach have established the company as a trusted enterprise partner with some of the largest organisations in the world,” said Mike Triplett, managing director at Insight Partners.

“This success is a testament to both the strength of its management team and the world-class technology platform they have built.

“We look forward to continued success together as Veeam embarks on the next wave of growth with its recently introduced cloud-first offerings.”

The transaction is expected to close in Q1 FY25.

Money comes and people move

The secondary offering follows a year marked by a redirection of focus for the vendor, after it laid off 300 employees in sales, marketing and administrative capacities, vowing to hire 500 new engineering and development roles.

The pivot was capped by the hire of Niraj Tolia, CEO and co-founder of AI-driven data management startup Alcion, which the company acquired in September.

Tolia joined as CTO.

IT vet Mena Migally was also named VP of EMEA east last month, in an effort to focus on cybersecurity, digital transformation, and hybrid cloud adoption.