Hewlett Packard Enterprise (HPE) plans to acquire Zerto, a cloud data-management company, in a deal valued at $374 million. HPE intends to fund the deal with cash on its balance sheet and expects that Zerto will contribute more than $130 million in run-rate revenue. HPE also anticipates that the Zerto acquisition will be accretive to adjusted operating profit and earnings in fiscal 2023. Zerto works with 350 managed service providers and 9,000 customers to provide capabilities like disaster recovery, protection against ransomware, and data mobility. The company "helps customers recover in minutes from ransomware, cyberattacks, and other unplanned downtime bringing data back to its original state just seconds before the attack or disruption," according to HPE's Thursday morning release announcing the acquisition. HPE expects the deal to close in its fiscal fourth quarter. HPE shares have gained 23% so far this year as the S&P 500 has risen 14%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 01, 2021 08:25 ET (12:25 GMT)
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