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Files, a software-as-a-service (SaaS) file transfer platform for file Integration and automation, announced the acquisition of ExaVault, a cloud file transfer vendor for small and mid-market businesses. This deal is projected to produce what the company describes as the industry’s largest cloud-native files platform, with more than 6,500 business-to-business (B2B) customers.
Founded in 2009, Files equips IT teams, developers, partners and end-users with all the tools necessary to streamline their business operations. With a customer base spanning The New York Times, Michelin, PBS, Grubhub, Mozilla and more, Files claims that enterprises use Files to perform high-volume file automation and facilitate business-critical transfers between end-users, teams, organizations and customers.
Although the cloud continues to disrupt traditional IT areas, many of the largest providers of the $1.2 billion file-sharing market are still relying on outdated on-premises technologies such as FTP/MFT. However, Files has experienced 65% annual growth over the last several years as businesses are gradually embracing cloud-native solutions.
“Legacy file transfer vendors like IBM, HelpSystems and Progress charge enormous prices but haven’t innovated in decades,” said Kevin Bombino, founder and CEO of Files. “We plan to continue to capture their customer base with a more affordable, cloud-native solution that leverages industry-leading automation. I look forward to combining ExaVault’s obsessive focus on speed and performance with Files’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 mid-market customers into the fold, which will greatly amplify our collective network effect and ecosystem reach.”
The goal of Files integrating with ExaVault is to ensure that any of the combined platform’s customer base can instantly exchange files with each other as part of an automated, secure on-platform workflow. The combined Files and ExaVault business now stores nearly 2 million GB of customer data. According to a recent Gartner report, the total value of the file-transfer market is estimated to grow by $100 million per year over the next three years, reaching $1.4 billion by 2024.
“We are excited to join an industry leader like Files, who has a proven reputation of supporting customers through powerful solutions and exceptional service. Files’s mission and approach mirror how we think and operate” said ExaVault CEO David Ordal. “Together, we will provide more value-driven innovation to customers through our greater combination of world-class tools, expertise and experience.” Ordal will continue to spearhead the company’s product development efforts, serving as Files’s new CTO.
Demand is expected to rise through 2022 and beyond, as businesses are facing challenges related to access, security and speed when it comes to file transfers, sharing and storage.