Israel’s CloudAlly acquired by Zix in a $30 million deal

Israeli cloud-based data backup and recovery provider CloudAlly Ltd. announced on Tuesday that it had been acquired by Dallas-based email security provider Zix Corporation in a $30 million cash deal.

CloudAlly was founded in 2011, employs 44 people in its Raanana offices. According to its statement, It hasn’t received any external funding, has 5,000 customers, and is projected to generate $8 million in annual recurring revenue until the end of 2020.

The Israeli company develops enterprise-grade secure cloud backup software to protect essential assets. Its solution will enable Nasdaq-traded Zix to expand its product suite and incorporate it into Microsoft Office 365 backup.

“With CloudAlly, we can now directly address the growing demand we’ve seen from partners, customers, and prospects alike for an enterprise-grade cloud backup offering with a best-in-class solution,” Zix CEO David Wagner said in a statement. “In fact, through a recent survey of our MSP partner base, we found that at least 45% of users confirmed they would purchase a backup solution from Zix if it became available. Cloud backup is our number one product adjacency, coupled with our proven success of attaching additional products to our customer base, gives us a high level of confidence so that we can leverage CloudAlly to become a greater business than just the sum of its parts. With CloudAlly, we can greatly enhance our Secure Cloud platform and also mitigate concerns around ransomware which has become a large industry focus.”

"A comprehensive data protection plan is more important than ever as companies around the world are focusing on cybersecurity for their remote workforce,” said Avinoam Katz, CloudAlly’s Chief Executive Officer. “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."