Expansion via acquisitions is J2 Global’s growth strategy to boost its Veeam services to customers.
As its Veeam backup and recovery backup business continues to grow with customers, Veeam channel partner J2 Global has been on a mission to acquire other Veeam services partners to further expand the company’s revenue and data backup operations.
For J2 Global, that acquisition strategy has been going on since last fall as the company continues to be in active conversations with several potential acquisition targets, Dan Timko, the chief strategy officer at J2 Global for its related OffsiteDataSync backup as a service business, told Channel Futures.
J2 Global’s Dan Timko
“If you look at the Veeam ecosystem, it was ripe for some rollup acquisitions,” including J2 Global’s acquisition of OffsiteDataSync itself in the third quarter of 2019, said Timko. “This was our strategy and the reason OffsiteDataSync was purchased in the first place. Our DNA is that of being a buyer.”
J2 Global, which in addition to its cloud backup business also owns a wide range of internet services companies, has made more than 180 business acquisitions since its founding, according to the company.
“We’ve been very open about wanting to acquire more Veeam partners, whether it be at Veeam partner advisory meetings or at other Veeam events,” said Timko. “We’re an active buyer. There are MSPs out there who are doing great things. And there are some companies out there who are finding that it’s no longer enough to do backup on their own, but that it’s better to work with a channel partner that is offering it.”
Those are some of the acquisition targets for J2 Global today, he said. “Maybe they have a small business with a chunk of revenue. That doesn’t mean it’s too late to partner with us. And we don’t have to buy a whole MSP. We can just buy a backup business the MSP has. The MSP will still have the customers, but they won’t have to continue to run the back end.”
For smaller MSPs, that would allow them to spend their time working where they should be working — as trusted advisers for their clients, said Timko.
This road map has been in the works since Timko started working for J2 last September, he said. “It was clear to me when I was brought on that this was part of the strategy,” he said. “Part of the reason I was brought on was that I’ve been in this specific data backup ecosystem for 10 years.”
The strategy was not influenced in any way by Veeam’s $5 billion acquisition by Insight Partners in January, but had been in the works long before that deal, said Timko.
The range of acquisition targets is wide, including large data backup companies to smaller mom and pop MSPs. “We try to identify who would be a fit and look at full acquisitions or at just carving out pieces. All of those options are on the table.”
J2 Global, with $1.4 billion in annual revenue, is also known as a digital media and shopping company, with brands like Mashable, IGN, PC Mag…
From https://mymarketlogic.com/blog/j2-global-bullish-on-veeam-seeks-to-acquire-veeam-partners/
From https://managedservicesmarketing.blogspot.com/2020/02/j2-global-bullish-on-veeam-seeks-to.html
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