SASI Advises Hubstor on Sale to Veritas

SASI is pleased to announce that it served as exclusive financial advisor to HubStor, a Canadian cloud backup and archival SaaS provider.  SASI led the M&A process from initial meetings through negotiations, due diligence and final closing documents.  Keys to success included understanding HubStor’s unique approach to data protection SaaS and the market opportunity in front of them, communicating their core value proposition and business model and efficiently driving the process though each phase.  This is SASI’s third cross-border trade representing a private Canadian company that was acquired by a leading U.S. technology provider.

My co-founder Greg and I decided to work with SASI because of the firm’s focused experience and connections. We came into the relationship with exceedingly high expectations, and SASI either met or exceeded them. Throughout the entire M&A process, SASI provided sage guidance, and they played a vital role as an extension of our company. SASI provided value at the early stages of the M&A process, and that value continued to flow as we moved through each stage. SASI became our trusted advisor on M&A-related positioning, LOI execution, due diligence, negotiation, legal issues, deal structuring, and all aspects of executing the definitive agreement. Overall, I can’t say enough good things about SASI and the incredible customer experience they provided to us.” — Geoff Bourgeois, Co-Founder and CEO of HubStor.

Greg Campbell, Co-Founder and CTO added “It was a pleasure to work with SASI through all the ups and downs of the M&A process.  SASI understands the entrepreneurial mindset and they did a great job of advising Geoff and I through all our concerns and questions along the way.”

About HubStor:

HubStor is a cloud data platform that simplifies how enterprises protect and manage data at any scale. Organizations leverage HubStor in cloud regions around the world for backup, file system tiering, compliance archiving, message journaling, content indexing and search, and application data retirement. HubStor is headquartered in Canada, maintains SOC 2 compliance and is a Microsoft Co-Sell Prioritized partner.

About Veritas:

Veritas Technologies is a global leader in data protection, availability and insights. Over 80,000 customers—including 87 percent of the Fortune Global 500—rely on us to abstract IT complexity and simplify data management. The Veritas Enterprise Data Services Platform automates the protection and orchestrates the recovery of data everywhere it lives, ensures 24/7 availability of business-critical applications, and provides enterprises with the insights they need to comply with evolving data regulations. With a reputation for reliability at scale and a deployment model to fit any need, Veritas Enterprise Data Services Platform supports more than 800 different data sources, over 100 different operating systems, more than 1,400 storage targets, and more than 60 different cloud platforms.

About SASI:

SASI, a boutique M&A advisory firm, was founded in 2005 with the belief that stakeholders in private technology companies demand and deserve a high level of M&A service.  Our clients seek an advisor who not only brings M&A proficiency but also significant industry, market and technology expertise and insights.  Equally, they desire an M&A advisor who understands the strategic buyer landscape and brings deep executive relationships within those organizations.  SASI primarily focuses on sell-side engagements, representing private, venture-backed and bootstrapped technology startups.  We drive the entire M&A process from upfront strategy formulation to buyer contacts through negotiations and closing.

Contact John Rotchford, Managing Director for inquiries (john@sasillc.com)

Cision’s Falcon.io acquires Unmetric

CHICAGO, Oct. 24, 2019 /PRNewswire/ — Cision (NYSE: CISN) today announced that Falcon.io, its social media management division, has acquired Unmetric, a leader in delivering insights from social benchmarking, audience engagement, and content performance.

Unmetric delivers public data from leading global brands across social media channels, enabling companies to enhance their content strategy, better engage with their customers, and spend time where it matters, delivering on business objectives and ROI.

Falcon.io will integrate Unmetric into their Social Media Marketing platform, enabling customers to drive consistent brand experiences across social content, engagement and insights.

“Our mission is to deliver a powerful social software suite that enables the brands we serve to win in their markets. Today the Unmetric acquisition gets us closer to this vision,” said Ulrik Bo Larsen, Founder of Falcon.io and President, Cision Social. “Giving brands the ability to benchmark, monitor, measure, better engage with their customers and audiences, and create and publish powerful content all in one unified platform across multiple channels will help them win.”

“Marketers are often data rich and insight poor. This is especially true in the content ecosystem where brands are communicating at the speed of culture. Brands, therefore, need to continually benchmark their social campaigns, content and channels, and use insights from the past to fuel campaigns for the future,” said Lux Narayan, CEO of Unmetric. “Unmetric brings this historical perspective to the Falcon.io platform to help brands and agencies create more compelling content.”

Falcon.io extends a warm welcome to the brands that Unmetric has been serving for years, such as Unilever, Pepsi, General Motors, Amgen, Bombardier, Edelman, TBWA, Homeaway, Away, GroupM and many more.

Unmetric’s social media marketing capabilities will be incorporated into the Falcon.io customer offering, and Unmetric’s team will be integrated into the Falcon organization and continue to build and expand on the use cases they have successfully taken to market.

SASI 1H 2019 Data Management Review: Venture Funding Breaks $800M While Smaller “Tuck-In” Deals Dominate M&A

1H 2019 M&A Highlights:

  • 1H 2019 had 12 deals totaling $734.0M compared to 19 deals with $853.3M in total consideration in 1H 2018.  We expect to see more “tuck-in” deals in the 2nd half of 2019 plus some larger exits from well-funded start-ups reaching that 7-8 year mark.
  • Notable transactions in the 1st half of the year include NetApp’s purchase of Cognigo, showing that they continue to be one of the more aggressive buyers as they broaden out far from their NAS roots.  Pure makes its’s second “tuck-in” deal with Compuverde while AWS moves on CloudEndure, bringing a needed DRaaS on-ramp to their cloud platform.  After 14 years, Nexenta finds a home with DDS while Veritas pays up $10M for Aptare in an effort to broaden their analytics platform.  The largest trade in the first half was our only public/public deal with Qlik Tech acquiring Attunity for $560M at a modest Price/Revenue multiple of 6.44x.  Attunity’s data integration and management solutions will expand Qlik’s enterprise data analytics platform.  Druva, which offers SaaS-based data protection, backup and management solutions, made its first acquisition with Cloudlanes and also hauled in $130M in funding.
  • More and more we are seeing late stage start-ups buying up smaller players in an effort to rapidly expand their product suite and develop teams.  We see this trend continuing well into 2020.
  • Going into the second half of 2019 and into 2020, we also expect MSFT/Azure, Google, AWS and other leading incumbent cloud infrastructure providers to “bulk up” on their enterprise class data management offerings through M&A.   With large enterprises leery of cloud “lock-in”, we see data mobility being critical along with overall data management across clouds and on-prem.  Kubernetes/cloud native and related data management challenges will also be a target area for M&A and further venture investment.

1H 2019 Venture Funding Highlights:

  • 1H 2019 Funding increased 30% to $804.1M from 1H 2018 of $618.6M.  Rubrik led the strong first half showing with a $261M 5th round of funding followed by Druva with a $130M 7th round of funding.  VAST Data raised the third largest round with a healthy $80M 2nd round. There were also five 1st rounds of funding across a spectrum of data management solutions showing that there is plenty of innovation and opportunities to disrupt the data management market.
  • In the memory space, investors double down on MRAM memory provider Avalanche with a $33M 7th round and MemVerge (distributed memory platform) hauled in a $24.5M 1st round of funding.  Lightsbits, providing NVMe-oF solutions, had the largest 1st round of funding, bringing in an impressive $50M from VCs and strategics including, Cisco, Dell and Micron.

For the entire report, please contact John Rotchford at john@sasillc.com.