Marlin Equity shops data protection company Arcserve

Marlin Equity-backed data recovery provider Arcserve is looking for a new private equity owner, three sources familiar with the process told PE Hub.

A sales process for the company in its late stages and the PE firm is accepting final bids, one of the sources said.

A handful of sponsors are in the mix, with the process expected to result in a PE play, two sources said. Lazard Freres & Co is advising the company on its sale, the people said.

Arcserve, based in Minneapolis, provides data protection, replication and recovery technology for enterprise and mid-market businesses. The company has 471 employees worldwide, according to its LinkedIn page.

Arcserve generates $130 million in revenue and $30 million in Ebitda, the people said. Marlin is expected to fetch between $400 million and $500 million in potential sale of the company, they said.

Marlin acquired Arcserve in May 2014 as a carveout from CA Technologies. Arcserve in the time since has completed one add-on, acquiring Zetta, an enterprise-cloud disaster recovery provider, in 2017.

During Marlin’s two-year hold, Arcserve also went through a CEO turnover. In September 2017, then CEO Michael Crest left Arcserve to join New York-based IT company Optanix as its president and CEO. Tom Signorello, former CEO of OnX Enterprise Solutions, stepped in to lead the company.

Separately, Marlin is also gearing up to bring Virgin Pulse, an employee wellness technology company, to market, PE Hub reported this week. The sale of Virgin Pulse could potentially be valued upward of $2 billion, three people said.

Lazard and Marlin did not return PE Hub’s requests for comment. Arcserve declined to comment.

Action Item: Check out Marlin Equity’s recent form ADV here.