Cloud Services Acquisition: Otava Buys Veeam Partner NewCloud Networks
Otava has acquired fellow cloud services provider and Veeam partner NewCloud Networks for an undisclosed sum.
This is technology M&A deal number 524 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Otava Acquires NewCloud Networks
NewCloud offers an on-demand website that allows customers to purchase solutions online. The company also provides desktop-as-a-service (DaaS) solutions that allow companies to manage distributed workforce environments.
As part of the deal, Otava – which was founded in 1994 – gains managed security, cloud backup, disaster recovery, remote desktop and production cloud services.
The acquisition bolsters Otava’s solutions portfolio, adding a nationwide 10Gb network and increases its geographic reach, bringing the company’s total offering to 18 cloud nodes available around the world, the company said. The deal also increases Otava’s employee headcount by about a third, according to the company.
NewCloud’s diverse, ultra-low latency network connects an additional ten cloud locations across the U.S. and Europe, according to Otava. The combined organization will now have points of presence in Denver, Phoenix, Dallas, Santa Barbara, Los Angeles, Cleveland, New York, Atlanta, Indianapolis, Ann Arbor, Flint, Las Vegas, Austin, Washington DC, as well as Frankfurt and Dusseldorf, Germany and Manchester, United Kingdom.
Otava Acquires NewCloud: Executive Insight
Brad Cheedle, CEO, Otava, commented:
“NewCloud is a trusted provider and top industry partner for secure and compliant cloud-based business solutions. This is our third acquisition in less than four years, furthering our mission to consolidate best of breed cloud providers with a hyper focus on investing in the right people, tools, and processes to deliver exceptional experiences for our partners and customers. Our businesses are tightly aligned, and together we stand out as a world-class provider with the right people to ensure secure hybrid cloud is a reality for customers across the globe.”
Sam V. Kumar, president and CEO of NewCloud Networks, said:
“It is great when like-minded organizations like NewCloud and Otava come together. This is more than just a transaction for NewCloud. We trust Otava as a leader that is taking the right steps toward the future to provide businesses with the breadth of solutions and level of support that is unmatched in the industry.”
For the remainder of 2021 NewCloud Networks and the NewCloud brand will continue operating independently as “NewCloud, an Otava Company” under Otava’s parent company, Schurz Communications, the companies said.
Franklin Court Partners acted as the financial advisor for NewCloud.