American cloud data giant NetApp has entered into a definitive agreement to acquire Tel Aviv-based Spot, the companies announced overnight Wednesday.
Although the value of the deal was not officially disclosed by the parties, Nasdaq-listed NetApp is expected to pay approximately $450 million to purchase Spot, formerly known as Spotinst.
Founded in 2015 by Amiram Shachar and Liran Polak, Spot’s products seek to optimize and automate companies’ cloud use to maximize the value and efficiency of their digital infrastructure.
Spot currently employs more than 180 staff across five offices in Tel Aviv, San Francisco, New York, Washington DC and London, and raised $53m. in funding prior to the acquisition.
“Spot was founded with a vision to revolutionize the way companies consume cloud infrastructure services, using analytics and automation to deliver the most reliable, best performing and most cost-efficient infrastructure for every workload on every cloud,” said Spot founder and CEO Amiram Shachar.
“We look forward to joining the NetApp family and building together the future of Application Driven Infrastructure and helping customers to deploy more workloads in the cloud.”
The acquisition could provide continuous cloud optimization enabling customers to save up to 90% of their compute and storage cloud expenses, the companies said. The transaction is expected to close in the first half of NetApp’s fiscal year.
NetApp, which operates an innovation center at Tel Aviv’s Shalom Meir Tower, enjoyed net revenues of $5.41b. during the 2020 fiscal year.
Previous purchases of Israeli companies include data protection start-up for $70m. in May 2019 and storage service management company Onaro for a reported $120m. in January 2008.
“The combination of NetApp’s leading shared storage platform for block, file and object and Spot’s compute platform will deliver a leading solution for the continuous optimization of cost for all workloads, both cloud native and legacy,” said Anthony Lye, senior vice president and general manager of public cloud services at NetApp.
“Optimized customers are happy customers and happy customers deploy more to the public clouds.”