(Reuters) -Veeam Software has agreed to buy data privacy management software maker Securiti AI for about $1.73 billion, in a bid to tap customers seeking to safeguard and manage cloud data used in artificial intelligence applications.
The deal would integrate Securiti AI's Data Command Center product, used to unify and secure data scattered across multiple cloud services, with Veeam's backup and recovery software, the companies said on Tuesday.
Veeam aims to better compete with rivals such as Rubrik
and Commvault Systems with the acquisition, as cybersecurity incidents surge.
Securiti AI Chief Executive Rehan Jalil will join Veeam as president of security and AI after the transaction closes, which is expected in the fourth quarter, the companies said.
Morgan Stanley advised Securiti AI on the transaction and JPMorgan provided financing to Veeam.
The companies said Veeam will continue to offer the San Jose, California-based Securiti AI's Data Command Center product and plans to announce integrated capabilities soon.
In December last year, U.S. private equity firm Insight Partners, which is the largest shareholder in Veeam, said it sold a $2 billion stake in the company in a secondary sale valuing the firm at $15 billion.
Veeam was acquired by Insight Partners for about $5 billion in 2020.
Veeam's software helps customers quickly recover their data after cybersecurity incidents including ransomware attacks as well as accidental data loss. Its core product supports immutable backups to prevent ransomware from modifying or deleting data, ensuring that clean copies remain available for recovery even if hackers encrypt files.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed)
