Swedish investment firm takes majority stake in Acronis
EQT buys a majority stake in Acronis but will likely be hands off for the foreseeable future, according to Acronis CEO Ezequiel Steiner. The deal is expected to close next year.
European investment firm EQT will become the majority shareholder of Acronis.
Acronis founders, executives and the company's existing investors, including CVC, Springcoast Capital Partners and BlackRock Private Equity Partners will remain on as significant minority shareholders of the data protection and cybersecurity vendor.
The purchase is expected to close within the first half of 2025. Specific financial details about the transaction were not disclosed. The purchase was made through EQT's investment fund, EQT X.
The EQT deal doesn't follow the traditional model of private investors buying out a company or venture capitalists buying into one, said Phil Goodwin, an analyst at IDC. What this means for Acronis' customers remains to be seen, he said, as the same investors and leadership will remain on for the time being.
"The current funding companies are maintaining their minority status," Goodwin said. "Sometimes those founders are shoved out, but it doesn't sound like that's the case here. I'd expect the basic structure to continue."
Company present
Acronis, founded in Singapore in 2003, primarily sells a security and backup platform, Acronis Cyber Protect Cloud, to MSPs with some enterprise customers. The company manages dozens of data centers for the service worldwide.
Acronis CEO Ezequiel Steiner said EQT approached Acronis about the shares purchase earlier this year. EQT, which is based in Stockholm, currently supports the existing strategy of the company while Steiner and the other minority shareholders still maintain some control.
Acronis is a profitable company. We didn't need more cash.
Ezequiel Steiner CEO, Acronis
"Acronis is a profitable company. We didn't need more cash," Steiner said. "We still remain a sizable minority [shareholder group]."
He said the company wasn't thinking about launching an IPO before the purchase but is planning for one in the years ahead. The company completed its last funding round in 2022, Steiner said.
Product investments for the coming year include further integration of automation and AI services within the platform, as well as expansion of the MSP partner network, he said.
Company future
Acronis has survived as a company for several decades and participated in numerous funding rounds, Goodwin said. The maturity of the company has enabled it to invest in R&D, he added.
Vendors seeking to raise funds, or founders looking for a financial exit, may seek an IPO or buyout, Goodwin said. Backup vendors remain interested in IPOs this year -- such as Veeam -- or have already done so -- such as Rubrik -- but IPO market conditions have steadily worsened, especially for tech, he said.
"This is really a private-equity acquisition at the end of the day," he said. "It gives Acronis access to funding, but EQT is going to ask for a return on their investment. Right now is a lousy time for an IPO."
Tim McCarthy is a news writer for TechTarget Editorial covering cloud and data storage.
