EQT Takes Majority Stake in Acronis at $3.5B+ Valuation

EQT’s $3.5B acquisition of a majority stake in Acronis highlights the growing investor interest in cybersecurity, with Acronis offering advanced data protection and security solutions

The enterprise value of Acronis, as well as the extent and value of the stake, are not being disclosed. According to EQT and Acronis, the transaction values Acronis at a higher level than its most recently disclosed valuation of $3.5 billion, derived from an investment made in 2022.

To provide context regarding growth, Acronis itself reports that its solutions are currently utilized by over 750,000 businesses and 20,000 service providers. In 2022, it reported having 5.5 million “home users” and 500,000 business customers; in 2021, it reported 10,000 service providers on its books. The number of employees has increased from 1,700 in 2022 to 2,000.

The annual recurring revenue of Acronis’ cloud business is increasing by 40%, according to Gaidar Magdanurov, the company’s president, in an interview with TechCrunch.

The organization informed TechCrunch that it was profitable in 2021. It has raised over $600 million in equity and debt in the years preceding this most recent transaction. BlackRock, CVC, and Goldman Sachs comprise its investors.

Magdanurov informed TechCrunch that the founders, management, and several existing investors, such as Black Rock, CVC, and Springcoast, will continue to serve as minority investors. He also stated that the company’s founders, Serg Bell (formerly known as Serguei Beloussov) and Stanislav Protassov, will maintain a substantial stake in the organization.

“The announcement made today represents significant progress.” In a statement to TechCrunch, Bell stated, “It has always been crucial for Stanislav and me, the founders, to identify a partner who is in perfect alignment with Acronis’s culture and vision.”

“We are confident that Acronis is the most suitable platform for service providers to protect and operate their customers’ information technology infrastructure profitably, given the increasing number and intensity of cyber threats.”

He stated that the two founders will concentrate on the Constructor Group, another initiative they have, emphasizing AI and metaverse applications.

This transaction has been in the works for an extended period. It is an example of the widespread use of private equity as an exit strategy for enterprise technology companies during an era in which the IPO window is largely closed.

Acronis was established in Singapore in 2003 and subsequently relocated to Switzerland. It was initially established as a subsidiary of Parallels, a virtualization specialist founded in Russia, emphasizing data recovery and backup.

Through the years, it has evolved into a comprehensive suite of services encompassing continuous data protection, cloud security, endpoint protection, patch management, anti-malware, and more. Commvault, Veritas, and other organizations comprise its competitors.

Acronis will persist in its operations now that it has received substantial investment from EQT.

“We are delighted to have EQT as a significant shareholder, as it will bolster our strategic expansion and align with our growth objectives,” stated Ezequiel Steiner, the current CEO of Acronis, in a statement. “We are grateful for the support of our current investors and are optimistic that a significant number will continue to invest in our company as we progress.” Above all, I would like to thank the Acronis team for contributing to our recent progress.

“Acronis is a cybersecurity and data protection software platform that is well-positioned and offers a clear value proposition to Managed Service Providers,” stated Johannes Reichel, partner and co-head of technology for EQT’s PE team.

The advisory team has followed the company’s journey for many years and is consistently impressed by its innovative strength and performance.” We are enthusiastic about collaborating with Acronis, the management team, and its current investors to drive the company’s next expansion phase.