Minneapolis-based CrashPlan, a cloud backup and recovery service created by Code42 Software Inc., has become its own company as part of an acquisition by an affiliate of Mill Point Capital.
New York based Mill Point, a private equity firm that focuses on lower-middle market companies, announced the purchase of CrashPlan from Minneapolis-based Code42 on Wednesday. Terms weren't disclosed.
CrashPlan will become a wholly owned subsidiary of Mill Point, according to Riley Bruce, the company’s director of marketing.
As its own business, CrashPlan intends to “accelerate development on an aggressive product roadmap” for its backup and recovery services, improve its customer support experience and broaden the audience for its data protection services, Bruce said in an email.
CrashPlan initially launched in 2007 as a software program for Code42. It was initially pitched to consumers, but Code42 announced in 2017 it was exiting the business, leading to a 55-person layoff, according to a Business Journal report.
Code42 had started moving toward business-to-business data security, especially focused on tackling “insider threats” to data. In 2020, CEO Joe Payne called data storage a “dying business,” the report said.
But more than two years later, it appears CrashPlan and its new owner see opportunities for growth.
CrashPlan says the lasting shift in hybrid and remote work as well as the growth of ransomware has produced “mounting market demand” for data backup and recovery services, according to a press release. The plan to separate from Code42 began earlier this year.
“I am very proud of the track record and market leadership that CrashPlan has achieved over the last fifteen years, and I am thrilled for CrashPlan to continue delivering on its value proposition for its customers," Payne said in a statement.
The deal was signed July 27, paving the way for an operational transition to occur over the next months, CrashPlan says.
“We couldn’t be more excited to help CrashPlan, its customers, and the team grow as part of the Mill Point portfolio of companies. I’m thrilled to see what we can do together,” Richard Summers, partner of Mill Point, said in a statement.
When asked whether operational changes would occur, including any layoffs, Bruce responded that CrashPlan and Mill Point have “worked diligently” to make sure there is no disruption to current CrashPlan customers or employees.
“With the new investment and focus, we expect to expand and grow our business,” Bruce said.
With the money Code42 received in the deal, the company says it will further develop its team and accelerate its insider risk management services.
