A Scottsdale-based company that enables business clients to manage files on the cloud expects significant new growth after acquiring a file-transfer vendor that serves small and mid-market businesses.
Files.com — which describes itself as the leading cloud-native software-as-a-service platform for file integration and automation — said its integration of ExaVault, based in San Ramon, California, will result in the industry’s largest cloud-native files platform, with more than 6,500 active customers. Financial details of the acquisition were not disclosed.
It’s the latest development in a busy year for Files.com, which moved to the Valley from Las Vegas in March 2021 and says it has seen exponential growth since then.
The company names The New York Times, Michelin, PBS and Mozilla among its customers. It is backed by private equity firm Riverwood Capital, from which it raised $46 million in 2021.
Files.com plans to integrate ExaVault’s platform, allowing customers to be able to directly exchange files with one another in addition to the system-to-system, system-to-human and human-to-system transfers that were already part of its platform. The company said the combined operation now stores nearly 2 million gigabytes of data for customers.
Recent successes are credited to an exodus of more and more enterprise businesses from on-premise managed file transfer technology providers to cloud-based solutions as they face file-transfer and storage challenges related to access, security and speed issues.
Kevin Bombino, founder and CEO of Files.com, said his business is taking advantage of the fact that legacy file transfer vendors cost more and have not kept up with innovation in recent decades.
“We plan to continue to capture their customer base with a more affordable, cloud-native solution that leverages industry-leading automation,” Bombino said in a statement. “I look forward to combining ExaVault’s obsessive focus on speed and performance with Files.com’s technical capabilities for integration and automation while retaining the customer-first approach that has propelled both companies thus far. We’re excited to bring their team and several thousand SMB and midmarket customers into the fold, which will greatly amplify our collective network effect and ecosystem reach.”
Citing a recent Gartner report that predicted $1.4 million in value growth for the file transfer market over the next three years, Files.com highlighted its own growth potential expectations for investors by announcing a 65% three-year revenue compound annual growth rate.
ExaVault’s CEO David Ordal will stay on with the combined company in the role of chief technology officer. He echoed predictions of huge growth potential in the immediate future.
“We are excited to join an industry leader like Files.com, who has a proven reputation of supporting customers through powerful solutions and exceptional service,” Ordal said in a statement. “Files.com’s mission and approach mirror how we think and operate. Together, we will provide more value-driven innovation to customers through our greater combination of world-class tools, expertise, and experience.”
The company has 25 open jobs listed for Scottsdale. More can be found here.
