A New Jersey-based software company that helps businesses protect their data is considering selling itself after attracting interest from multiple potential buyers, according to industry sources.
Commvault Systems, headquartered in Tinton Falls, New Jersey, has brought on investment bank Goldman Sachs to evaluate its strategic options, four people with knowledge of the situation told Reuters. The company, valued at approximately $3.5 billion, has received inquiries from both private equity investors and strategic acquirers.
Among those showing interest is private equity firm Thoma Bravo, which sources say has expressed interest in acquiring Commvault in recent weeks. According to one source, the buyout firm had previously submitted an offer for the company, though details about timing and price were not disclosed.
Representatives for Commvault, Goldman Sachs, and Thoma Bravo all refused to provide comment on the matter.
The software company specializes in helping organizations safeguard and restore their digital information when faced with cyber incidents, ransomware attacks, technical malfunctions, or accidental data loss across enterprise systems and cloud platforms. Notable clients using Commvault’s services include manufacturing giant 3M, entertainment company Sony, and hotel chain Hilton.
Software company stock prices have faced significant headwinds recently as investors worry about artificial intelligence’s potential impact on traditional business models. Commvault’s shares have plummeted roughly 60% since reaching their peak on September 18.
However, the company’s financial performance remains robust. In its latest quarterly report, Commvault posted impressive results with revenues climbing 19% to reach a company record of $314 million. The firm’s yearly recurring revenue hit $1.085 billion, representing a 22% increase from the previous year.
Although declining stock prices typically attract private equity interest, most firms have been cautious about new software investments while AI-related uncertainty persists in the market.
Thoma Bravo’s Managing Partner Orlando Bravo has taken a different approach, describing the software sector’s decline as presenting a “huge buying opportunity.”
The data recovery business has proven more resistant to disruption within the broader cybersecurity industry, as artificial intelligence actually increases rather than reduces the demand for backup and recovery solutions.
