Carbonite enhances its data protection offerings with Double-Take Software acquisition

Carbonite, vendor of data protection solutions for small and midsize businesses, announced Tuesday that it has acquired Double-Take Software, an affiliate of Vision Solutions, and Clearlake Capital.

The acquisition enhances Carbonite’s existing suite of data protection solutions for small and midsize businesses (SMB) with high availability technology that significantly minimizes downtime. Carbonite also announced preliminary fourth quarter and full year 2016 financial results.

As part of the acquisition, Double-Take Software adds to the Carbonite solution suite its Double-Take High Availability for replication of applications and data, in real time, from physical, virtual and cloud servers; Double-Take Disaster Recovery for failover between a primary and secondary or cloud location in an emergency; Double-Take Move for scheduled move of systems from one location to another; Double-Take Cloud Migration for planned migration from MS Windows to Amazon, Azure or Google clouds; and Double-Take SQL Migration for migrating and upgrading Microsoft SQL Server.

The aggregate purchase price for Double-Take Software was $65.25 million, comprised of $59.75 million in cash and $5.5 million in Carbonite common stock, representing approximately 332,000 shares. Of the $59.75 million in cash, $20.55 million was funded with cash on hand and $39.2 million was funded through a revolving credit facility at Silicon Valley Bank. The transaction closed on Jan. 31 with Barclays acting as financial advisor to the company.

Double-Take High Availability (HA) solutions have been trusted by businesses for more than two decades to protect them from the costs and consequences of unplanned downtime and data loss.

Available for both Windows and Linux, these solutions help keep businesses running in the face of ever-increasing cyber-threats, disasters, and technology failures. Together with Carbonite’s proven portfolio of cloud and hybrid backup and disaster recovery solutions, Carbonite will now address the data protection needs and uptime requirements of all midsized and small businesses.

“Persistent and emerging IT threats, such as hardware or software failures, cyberattacks and malware, continue to expose businesses to data loss and downtime,” said Phil Goodwin, Research Director at IDC. “We estimate that businesses can lose hundreds of thousands of dollars due to unplanned downtime. IT organizations need the ability to protect and recover data instantly, rather than in hours or days, to avoid irreparable business damages.”

“Carbonite data protection solutions are designed to meet the real needs of businesses today, from the midsized company with a global footprint to the single small office,” said Mohamad Ali, president and CEO of Carbonite. “Our current solutions support scenarios ranging from simple file restore to failover, and with the addition of Double-Take HA, we can now extend those scenarios to active recovery in near real-time, significantly minimizing any downtime and the associated loss of productivity and revenue.”

“Carbonite is a recognized leader and platform company in data protection, and the addition of Double-Take’s High Availability solutions to the Carbonite portfolio makes clear strategic sense and firmly positions Carbonite to capitalize on the growing data protection opportunity,” said Behdad Eghbali, managing partner of Clearlake Capital. “We’re impressed with Carbonite’s team as well as their vision and we are confident that the acquisition of Double-Take Software will create significant value for shareholders.”

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