Zix Acquires CloudAlly

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Texas security technology company Zix Corporation has acquired an Israeli cloud-based backup and recovery provider that will turn ten in 2021.

CloudAlly describes itself as a pioneer of enterprise-grade Software-as-a-Service (SaaS) cloud backup and recovery solutions that serves more than 5,000 customers and boasts around 250,000 users. 

The company offers a suite of award-winning, ISO 27001–certified, and GDPR/HIPAA–compliant solutions for Microsoft Office 365, Google Workspace (formerly G Suite), SharePoint, OneDrive, Salesforce, Box, and Dropbox. 

CloudAlly is a channel-first provider supported by 600 managed service provider (MSP) partners that is projected to generate approximately $8.0m in annual recurring revenue for the fiscal year ending December 31, 2020.

Zix, which is headquartered in Dallas, announced the acquisition on November 9. CEO of Zix, David Wagner, said that the deal was made to directly address growing demand the company has seen from partners, customers, and prospects alike for an enterprise-grade cloud backup offering with a best-in-class solution.

Wagner added that 45% of the company's MSP partner base said in a recent survey that they would purchase a backup solution from Zix if it became available. 

"Cloud backup being our number one product adjacency, coupled with our proven success attaching additional products to our customer base, gives us a high level of confidence that we can leverage CloudAlly to become a greater business than just the sum of its parts," said Wagner. 

"With CloudAlly, we can greatly enhance our Secure Cloud platform and also mitigate concerns around ransomware which has become a large industry focus."

Avinoam Katz, CloudAlly’s CEO, said that the acquisition would benefit customers focused on achieving the best possible cybersecurity for their remote workforce. 

"We're extremely excited to join forces with Zix at this time and feel that our industry leading cloud backup service will be a complementary and valuable addition to their recently announced Secure Cloud Platform, an integrated suite of productivity, security and compliance services," said Katz.

"This suite of services will give our rapidly growing combined customer and partner base around the world the tools they need to protect their critical cloud assets across an evolving distributed workforce."

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