NetApp Divests Cloud Software Assets in Favor of Flexera: Private Equity Shows Interest

In a remarkable move, NetApp has decided to sell part of its cloud software portfolio to Flexera, which is backed by Thoma Bravo. According to industry insiders, the deal amounts to a significant sum of approximately 100 million US dollars. This transaction includes business units that emerged from the acquisitions of the start-ups Spot and CloudCheckr. An official announcement is expected this Wednesday. In light of a growing trend in the industry to focus more on core competencies and divest peripheral businesses, this development is part of a broader movement. According to Bloomberg data, global asset sales increased by 26 percent in 2024 to a total of approximately 555 billion US dollars. Private equity firms, which are sitting on record levels of available funds, are increasingly seeking corporate spin-offs to invest their capital profitably. NetApp was able to acquire Spot in 2020 and CloudCheckr in 2021 for undisclosed prices. Reports from Israel stated that the purchase price for Spot at that time was 450 million US dollars. NetApp's stock price has risen by 35 percent in the past year and closed on Tuesday with a gain of 1.5 percent at 116.69 US dollars in New York, valuing the company at around 24 billion US dollars. Thoma Bravo already acquired a majority stake in Flexera in 2020, with TA Associates and the Ontario Teachers’ Pension Plan Board also holding shares.