SASI advises ClearSky Data on Recent Capital Raise

SASI advised ClearSky Data on strategic partnerships and investment opportunities and engaged with leading technology providers that could leverage ClearSky’s disruptive data management services. Keys to success included understanding and conveying ClearSky’s technology and service models, identifying top candidates and their strategic relevance to ClearSky and driving negotiations and process details to a successful outcome.

ClearSky Data, provider of on-demand primary storage with built-in offsite backup and disaster recovery (DR) raised $20 million in new funding. New investors include a market-leading technology provider and Pear Tree Partners, L.P., in addition to participation from existing investors: General CatalystHighland Capital Partnersand Polaris Partners. The company has raised $59 million to date. ClearSky will use the funds to accelerate customer deployments, sales and go-to-market activities.

ClearSky is experiencing strong business momentum in all areas, already more than doubling year-to-date revenue over its last full fiscal year, and rapidly growing its customer base to include cloud-forward companies like Partners HealthCare, Massachusetts General Hospital, Nuance Communications and Unitas Global. Also announced today, the company is expanding its U.S. footprint in partnership with Equinix, who manages the world’s largest global platform of interconnected data centers and business ecosystems.

ClearSky transforms the way enterprises manage and consume data by replacing capital and time-intensive deployments with a single, durable copy of data that’s available anywhere and is consumed as a service. ClearSky’s patented edge-based service automatically optimizes data across its lifecycle, giving enterprises limitless data access from multiple locations, complete with flash performance, comprehensive protection and management simplicity.

 

Data Management Venture Funding Rolls on with $1.3B while M&A Plays Small Ball

Missing a multi-billion blockbuster deal, total consideration plummeted to under $1B while the deal count of 28 remains roughly even with past years.  While 2017 was a year marked by private equity buyers jumping in with both feet, 2018 sees the return of strategic buyers rolling up smaller players.  The 2018 median deal size declined to $50M but the median price to revenue multiple jumped up to 5.2X and for technology focused transaction, that multiple went up to 6.0X.  M&A slowed in the second half of 2018 with just 9 announced deals.  For 2019, we see a healthy M&A market that is likely to top the 28 deals in 2018 with total consideration moving well north of $1B.  The public markets are shaky and there are economic concerns both within the U.S. and internationally.  However, we do not see the pace of innovation slowing in data management and actually see more market disruption coming in 2019.  We also see discreet data management solutions merging together which will cause “one trick pony” start-ups to consider M&A sooner than later.  The larger incumbents are fully aware of the increased pace of innovation and in many instances, will simply buy vs. build in 2019.  For the full report please contact John Rotchford, Managing Director, at john@sasillc.com.