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NEW YORK, April 10 (Reuters) - Data protection software provider Commvault Systems is exploring a sale after receiving takeover interest from multiple parties, according to four people familiar with the matter.
Commvault, which has a market capitalization of about $3.5 billion, is working with Goldman Sachs on its options, according to the sources, after fielding inquiries from both private equity firms and strategic buyers.
Thoma Bravo is among the potential buyers that have expressed interest in Commvault in recent weeks, said two of the sources. One source said the buyout firm had already made an earlier offer for the company, without specifying when and at what price.
Shares of Commvault jumped more than 17% on Friday, before paring some of the gains, after Reuters reported the company is exploring a sale.
Commvault, Goldman Sachs, and Thoma Bravo declined to comment.
Tinton Falls, New Jersey-based Commvault provides software that helps businesses protect and recover data in the event of cyberattacks, ransomware, system failures or accidental deletion across major enterprise platforms and cloud providers.
Its customers include 3M, Sony and Hilton, according to its website.
Valuations of publicly traded software companies have broadly struggled in recent months, as investors fret over how artificial intelligence is disrupting their business models. After hitting an all-time high on September 18, Commvault shares have subsequently dropped around 60%.
Despite its share performance, Commvault reported strong growth in its most recent quarter, with revenue rising 19% to a record $314 million. Annualized recurring revenue reached $1.085 billion, up 22% on the prior year.
While steep share price drops often catalyze takeover interest from private equity firms, most have skirted new deals for software companies as the AI disruption trade plays out.
Thoma Bravo Managing Partner Orlando Bravo has been open to those, however, saying the software selloff is a “huge buying opportunity.”
Data recovery has emerged as a resilient pocket within the cybersecurity sector, as AI further increases the need for backup and recovery systems instead of displacing them.
(Reporting by Milana Vinn in New York; Editing by David French and Deepa Babington)
