Cloud Software Group has entered into an agreement to acquire Arctera, a provider of data management and protection software. Arctera is being acquired from funds affiliated with investment firm Carlyle. Financial details of the transaction have not been disclosed.
The acquisition is expected to be completed in the fourth quarter of 2025, subject to regulatory approval and customary closing conditions. Upon completion, Arctera will operate as an independent business unit within Cloud Software Group.
Arctera was formed in 2024 through the merger of Veritas’ Enterprise Data Protection division with Cohesity. The company offers data protection and compliance software, including products such as InfoScale, Insight, and Backup Exec. Its headquarters are located in Pleasanton, California. Arctera has an annual revenue of over $400 million and an adjusted EBITDA margin of over 40 percent. According to TechTarget, Arctera has tens of thousands of customers worldwide, including a majority of Fortune 100 companies.
Acquisition fits strategy
According to CEO Tom Krause, the acquisition fits into Cloud Software Group’s broader strategy of growing through acquisitions of companies that focus on mission-critical software for enterprises and governments. Krause says his company has previous experience in improving the profitability and long-term sustainability of prior acquisitions, such as Citrix and TIBCO.
The CEO describes Arctera’s activities as complementary to Cloud Software Group’s existing portfolio. He indicates that the company has been interested in Arctera for some time. The acquisition also offers opportunities to expand the joint service offering.
Arctera CEO Lawrence Wong says that joining Cloud Software Group will better enable his organization to support customers in managing data. According to Wong, Arctera’s three product lines will continue to focus on solving complex data issues. TechTarget reports that Arctera recently added functionality to its Insight platform for logging and protecting large language models, responding to growing attention to AI and data privacy.
Cloud Software Group itself was formed in 2022 from the merger of Citrix Systems and Tibco Software, an acquisition supported by Vista Equity Partners and Evergreen Coast Capital. Since then, brands such as Information Builders, Spotfire, and Jaspersoft have been added to the portfolio. The company serves more than 100 million registered users worldwide. In 2023, thousands of jobs were cut in a broader strategic refocus on larger enterprise customers.