Flexera Acquires NetApp's Spot FinOps Business to Enhance Cloud Cost Management Capabilities

Flexera to Acquire FinOps Business from NetApp, Inc. to Strengthen FinOps Portfolio - NetApp (NASDAQ:NTAP)

ITASCA, Ill. and SAN JOSE, Calif., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Flexera, the global leader in technology spend and risk management, has entered into a definitive agreement to acquire the Spot by NetApp FinOps business from NetApp® NTAP, the intelligent data infrastructure company. The transaction will enhance Flexera's ability to better serve customers and partners seeking to manage growing multi-cloud cost and FinOps needs across a broader range of services from hybrid cloud, SaaS applications and containers. The combination of Spot's artificial intelligence (AI) and machine learning (ML)-enabled technology and Flexera's hybrid cloud expertise will offer a comprehensive FinOps solution that enhances financial accountability and efficiency in cloud operations, and also aligns with the expanding scope of FinOps which now includes data centers, SaaS applications and public cloud along with the growing FinOps framework that includes software licensing and sustainability. "A tsunami of artificial intelligence applications is exponentially increasing organizations' consumption of cloud resources," said Jim Ryan, President and CEO of Flexera. "Yet, we hear from many organizations about the difficulty in answering basic questions like 'what technology services do we use?' and 'why are our cloud bills so high?'. Our acquisition of Spot is the next step in Flexera's strategic plan to provide organizations with a full panorama of their technology spend and risk across the entire IT ecosystem. We want to make it easy for anyone to find and analyze any data related to spend and risk for any kind of technology, anywhere it lives." Navigating a multifaceted spend and risk landscape "This decision reflects NetApp's sharpened focus and underscores our commitment to intelligent data infrastructure and long-term growth opportunities," said Haiyan Song, Executive Vice President, Intelligent Operations Services, at NetApp. "After a thorough evaluation, it is clear that Flexera's established expertise and global reach provide the ideal environment for the Spot business to thrive and scale. This move not only allows the Spot team and portfolio to unlock their full potential within Flexera's ecosystem but also reinforces our dedication to driving value creation and achieving our ambitious growth objectives." The Spot solutions provide continuous automation, optimization, and insights on an organization's cloud infrastructure and applications. The acquisition will add new capabilities such as Kubernetes cost management and commitment management to Flexera's industry-leading FinOps portfolio. With the acquisition, Flexera will also create a richer ecosystem of FinOps Managed Service Providers (MSPs) to serve customers' evolving needs and bring new DevOps users into its robust customer community. A foundation of FinOps excellence Flexera has a long history of investing in both in-house innovation and strategic acquisitions to build out its FinOps and cloud cost management portfolio, going back to its acquisition of RightScale in 2018. Most recently, Flexera was named a Leader in the 2024 Gartner® Magic QuadrantTM for Cloud Financial Management Tools and positioned as a Leader in The Forrester WaveTM: Cloud Cost Management and Optimization Wave, Q3 2024 The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals. Financial details of the transaction will not be disclosed. About Flexera Flexera helps organizations understand and maximize the value of their technology, saving billions of dollars in wasted spend. Powered by the Flexera Technology Intelligence Platform, our award-winning IT asset management, FinOps and SaaS management solutions provide comprehensive visibility and actionable insights on an organization's entire IT ecosystem. This intelligence enables IT, finance, procurement and cloud teams to address skyrocketing costs, optimize spend, mitigate risk and identify opportunities to create positive business outcomes. More than 50,000 global organizations rely on Flexera and its Technopedia reference library, the largest repository of technology asset data. Learn more at flexera.com. About NetApp NetApp is the intelligent data infrastructure company, combining unified data storage, integrated data services, and CloudOps solutions to turn a world of disruption into opportunity for every customer. NetApp creates silo-free infrastructure, harnessing observability and AI to enable the industry's best data management. As the only enterprise-grade storage service natively embedded in the world's biggest clouds, our data storage delivers seamless flexibility. In addition, our data services create a data advantage through superior cyber resilience, governance, and application agility. Our CloudOps solutions provide continuous optimization of performance and efficiency through observability and AI. No matter the data type, workload, or environment, with NetApp you can transform your data infrastructure to realize your business possibilities. Learn more at www.netapp.com or follow us on X, LinkedIn, Facebook, and Instagram. NETAPP, the NETAPP logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners. Flexera Media Contact: Ciri Haugh Flexera [email protected] NetApp Media Contact: Kenya Hayes NetApp [email protected] Investor Contact: Kris Newton NetApp [email protected] NTAPNetApp Inc$116.69-%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Flexera acquires NetApp's Spot FinOps business By Investing.com

ITASCA, Ill. and SAN JOSE, Calif. - In a strategic move to bolster its cloud financial management offerings, Flexera has announced the acquisition of the Spot by NetApp (NASDAQ:NTAP) FinOps business from NetApp (NASDAQ: NTAP), a prominent player in intelligent data infrastructure with a market capitalization of $23.72 billion. This acquisition aims to enhance Flexera's capabilities in managing multi-cloud cost and FinOps needs, expanding its services to include hybrid cloud, SaaS applications, and containers. According to InvestingPro analysis, NetApp maintains a strong financial position with a 71.1% gross profit margin and has demonstrated impressive market performance with a 37% return over the past year. The integration of Spot's AI and ML-driven technology with Flexera's expertise is expected to provide a comprehensive FinOps solution that promotes financial accountability and operational efficiency in cloud environments. The deal includes advanced features like Kubernetes cost management and commitment management, adding to Flexera's FinOps portfolio. NetApp's strong market position is reflected in its consistent dividend payments, maintained for 13 consecutive years, demonstrating long-term stability. For detailed insights into NetApp's financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive ProTips and detailed financial metrics. Jim Ryan, President and CEO of Flexera, emphasized the growing demand for technology spend and risk management across different IT ecosystems, citing the acquisition as a significant step in Flexera's strategic plan. He pointed out the challenges organizations face in understanding their cloud expenditures and technology service usage. Flexera's history of developing its FinOps and cloud cost management portfolio through acquisitions and innovation dates back to its acquisition of RightScale in 2018. The company has recently been recognized as a leader in both the 2024 Gartner (NYSE:IT) Magic Quadrant for Cloud Financial Management Tools and The Forrester Wave for Cloud Cost Management and Optimization in Q3 2024. Haiyan Song, Executive Vice President of Intelligent Operations Services at NetApp, described the transaction as beneficial for both the Spot business and NetApp's focus on intelligent data infrastructure and growth objectives. She expressed confidence in Flexera providing an environment for the Spot business to thrive and scale. The acquisition is also set to expand Flexera's ecosystem of FinOps Managed Service Providers (MSPs), serving the evolving needs of customers and welcoming new DevOps users into its customer community. The transaction is pending customary closing conditions and regulatory approvals, with the financial details remaining undisclosed. The acquisition is based on a press release statement, and more information on Flexera and its services can be found on its website. NetApp's stock currently trades near its InvestingPro Fair Value, with 18 analysts recently revising their earnings expectations upward for the upcoming period, suggesting positive momentum in the company's core business. In other recent news, NetApp has reported a 6% year-over-year increase in revenue, reaching $1.66 billion in Q2 of fiscal year 2025. The company also raised its full-year revenue outlook to between $6.54 and $6.74 billion, with earnings per share expected to increase by 13% to fall between $7.20 and $7.40. JPMorgan (NYSE:JPM) has upgraded NetApp's stock from Neutral to Overweight, increasing the price target to $160 due to an anticipated acceleration in revenue growth. Both TD Cowen and Citi have expressed confidence in NetApp's future performance, with TD Cowen maintaining a Buy rating and Citi maintaining a Neutral rating but increasing the share price target. Other recent developments include a record operating margin for the quarter, a 19% increase in annualized revenue from all-flash storage arrays, and a 9% growth in public cloud revenue. NetApp's partnerships with firms like Google (NASDAQ:GOOGL) Cloud have expanded, and their Keystone storage-as-a-service offering saw approximately 55% growth year-over-year. These are among the recent developments that highlight the company's positive momentum.