Cloud Software Group to buy data protection vendor Arctera
Cloud Software Group, a company formed after the 2022 merger of Citrix Systems and Tibco Software, is set to acquire Arctera, which formed after the Cohesity and Veritas merger.
Cloud Software Group plans to add data protection specialist Arctera to its roster of enterprise software and platform vendors.
Arctera's long history as part of the former Veritas company gives CSG inroads into many established enterprise customers' data protection needs, said Krista Case, an analyst at The Futurum Group.
CSG's catalog already consists of data analytics and management tools, making the Arctera data management capabilities across compliance, resilience and protection a natural fit as cybersecurity concerns escalate, she said.
"[Those concerns] have become board-level priorities given the onslaught of cyberattacks and growing roster of legislation for data privacy and cybersecurity," Case said. "[Arctera is] already a mature business with tens of thousands of customers -- including the majority of Fortune 100 firms -- and healthy revenue and margins."
The acquisition is expected to close in the fourth quarter of 2025, CSG said in a media statement. The price of the acquisition was not disclosed, but CSG said it "expects to fund the acquisition using cash on its balance sheet."
CSG is also planning on making more acquisitions, CEO Tom Krause said in a prepared statement.
"Looking ahead, we aim to acquire at-scale enterprise-focused software businesses that provide proven mission-critical capabilities and high value to public and private sector customers while also ensuring they're a good fit to operate within our proven Cloud Software Group model," his statement read.
Past history
Arctera opened its doors last fall as a spinoff of Cohesity's acquisition of Veritas. The new company consisted of executive leadership from Veritas and a handful of former Veritas technologies, including Backup Exec, InfoScale and Insight Platform.
The acquisition made Cohesity one of the largest data backup vendors in the market last year, with a total of 12,000 customers and a combined value of $7 billion, according to Cohesity.
[Arctera is] already a mature business with tens of thousands of customers -- including the majority of Fortune 100 firms -- and healthy revenue and margins.
Krista CaseAnalyst, The Futurum Group
Arctera's Insight Platform, previously known as the Data Compliance Platform, recently expanded its capabilities to support large language model logging and protection services. Arctera claimed in the media release that it has thousands of customers globally and generates more than $400 million in annual revenue.
Cloud Software Group was formed in 2022 following the merger of digital workspace vendor Citrix and data management and analytics vendor Tibco. The company and its merger were funded at the time through Vista Equity Partners and Evergreen Coast Capital.
Since then, CSG has expanded its brands with three others: Information Builders, a data quality platform; Spotfire, a data analytics platform; and Jaspersoft, a report generation tool. The company claimed in the media release that it has 100 million registered users worldwide.
The formation of CSG came with some bloodshed, as the combined company cut thousands of jobs in 2023 as part of its business strategy to focus only on the largest clients.
Tim McCarthy is a news writer for Informa TechTarget covering cloud and data storage.
