Comment on InterCloud’s Acquisition of VaultLogix

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March 28, 2014

This week, InterCloud Systems, Inc. (Nasdaq: ICLD) announced that it has entered into a Definitive Agreement to acquire cloud solutions company, VaultLogix, LLC for undisclosed amount. According to the official press release, “the transaction is expected to close in the next 60 days, and is subject to customary closing conditions and acceptable financing terms.”

Established in 2002, VaultLogix is a Danvers, MA based hybrid cloud backup services provider with a client list of “nearly 10,000 businesses from around the world” and “has over $12 million in annual recurring revenue, with EBITDA at approximately $4.5 Million”.

Photo: Tim Hannibal

We reached out to the CEO of VaultLogix Tim Hannibal to give us more insight into this acquisition and perhaps give us some information what the vision of the new company will be.

Benefits
According to Hannibal, “the acquisition is a perfect match. Firstly, InterCloud is a large public global single-source provider of value-added services for both corporate enterprises and service providers. This comes with security and reassurance that the customers will enjoy uninterrupted and improved services, allowing VaultLogix to integrate new solutions, updates, and products”.

Secondly, “InterCloud a multitude services provider, which offers cloud and managed services, professional consulting services and voice, data and optical solutions, and many more. This allows VaultLogix to innovate and grow exponentially. For instance, VaultLogix had four data centres in the United States and Canada before the acquisition; and InterCloud had four data centres in similar locations before this acquisition”. Hannibal points out that “now the combined eight data centres will give us huge advantages over the competition”.

Why VaultLogix was chosen for this acquisition? Hannibal lists the reasons:

• Excellent working relationships with InterCloud management
• Proprietary software that integrates seamlessly with InterCloud’s cloud platform
• Simplified portal with billing capabilities
• Superior technology – agentless, block-level data deduplication, and compression
• Over $12 Million a year revenues (VaultLogix has been profitable since 2004)
• GSA certified
• Partner program, with over 500 channel partners
• White label software branding
• SOC2 Type 2
• 24×7 customer support
• Regulatory compliance
• Robust partner portal
• Dedicated account management
• Integration with 13 of the premier RMM and PSA companies

Staff
There will not be any change in headcount at the company and Hannibal will remain with the new company. This is especially a good news, as in most cases, headcount is affected after acquisitions.

So, what is possible in this marriage?
It looks like that this marriage is well thought and pre-planned. Hannibal comments, “We look forward to both selling the VaultLogix services to the impressive InterCloud clientele, as well as cross-selling the portfolio of InterCloud services to our existing team of resellers and customers. Since InterCloud provides cloud services such as IaaS, Virtual Desktop, Hosted Exchange, Disaster Recovery in the cloud and file sharing, the marriage is highly complementary.”

Going Forward 
BackupReview.info hopes that this acquisition will have a positive impact on both VaultLogix and InterCloud and strengthens their respective positions within the cloud-based services market.

We congratulate everyone at VaultLogix for their successful exit.

For more information, visit:
www.intercloudsys.com
www.dataprotection.com

About the Author: Mamush Heayie is Founding Analyst and Managing Editor at BackupReview.info

Tags: InterCloud, Tim Hannibal, VaultLogix