![]() ![]() For example, if you had a disaster two days ago, a safe Recovery Point Objective would be three days ago. Think of your Recovery Point Objective as the point in time you’d like to go back to and retrieve clean versions of your files. This week, we’re focusing on the next step: Defining your Recovery Point Objective (RPO) and your Recovery Time Objective (RTO). Last week we talked about choosing the right place to store your data. It will take 12 months of technology integration and sales team ramp-up to know whether it was a good move, but I am optimistic that a re-energized Carbonite will be able to capitalize on a low-price acquisition that expands its available market and offerings.It’s time for the latest installment of our six-part series on how to launch an effective backup and disaster recovery strategy. In sum, the deal is promising to Carbonite as it appears it paid about 2.6x forward revenues for a complementary business into which it can cross-sell. ![]() (Non-GAAP)Ĭarbonite's existing focus is on the small and mid-market segments, and Double-Take will afford it opportunities to cross-sell its EVault service to Double-Take's mid-market and larger customer base. In addition, Double-Take may add a midpoint of $25 million in 2017 bookings to Carbonite's current revenue run rate of $206 million. In Carbonite's acquisition presentation (PDF), management highlighted the addition of 6,000 customers and 500 partners that Double-Take will bring. The seller, Vision Solutions, sold Double-Take because it wants to more tightly focus its operations on data protection, high availability and IT automation software functions. ![]() In the current online environment, SMBs need these capabilities that can provide real-time access, rather than hours or days.ĭouble-Take's software accomplishes this for Windows and Linux SMB users, so adds to Carbonite's existing market penetration with individuals and small businesses. The acquisition will enhance Carbonite's offerings by providing real-time replication and disaster recovery capabilities to the SMB (small and midsized business) market. previous guidance of $46.6M to $51.6M.Ĭarbonite provided five rationales for the acquisition:ĭouble-Take High Availability - Replication of applications and data, in real time, from physical, virtual and cloud serversĭouble-Take Disaster Recovery - Failover between a primary and secondary or cloud location in an emergencyĭouble-Take Move - Scheduled move of systems from one location to anotherĭouble-Take Cloud Migration - Planned migration from MS Windows to Amazon, Azure or Google cloudsĭouble-Take SQL Migration - Migrating and upgrading Microsoft (SQL Server) The remaining cash portion was funded via $39.2 million through a revolving credit facility with Silicon Valley Bank.Ĭoncurrently with the transaction announcement, the company announced updated guidance for 4Q and FY 2016 financial results with GAAP revenues for 4Q 2016 expected to be in a range of $53M to $53.5M vs. As of September 30, 2016, the company had $49.1 million cash and cash equivalents (Unaudited). Double-Take had originally been taken private for $242 million in 2010, so Carbonite paid a fraction of that price for the deal.Ĭarbonite funded $20.55 million of the cash portion of the deal via cash on hand. The company provides software that helps enterprises reduce their downtime for Microsoft ( MSFT)-based server environments as well as Linux and VMware ( VMW) ESX operating systems.īelow is a brief explainer video about the company's disaster recovery protection system:Ĭompetitors to the company's software are too numerous to mention here, but include:Īcquisition Terms, Rationale and Commentaryĭeal consideration was $65.25 million, composed of $59.75 million in cash and $5.5 million in Carbonite stock. Irvine, California-based Double-Take was founded in 1991 as NSI Software, changed its name in early 2006, went public in late 2006, and was acquired by current seller Vision Solutions, which is a portfolio company of private equity firm Thoma Bravo. The technology and sales team integration will take 12 months before investors know how well the acquisition may pay off for Carbonite. The acquisition is valued at 2.6x forward bookings, so appears to be a good deal for Carbonite to expand its available market and offerings to cross-sell into. Data protection company Carbonite ( NASDAQ: CARB) announced that it has acquired Double-Take Software for $65.25 million in cash and stock. ![]()
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