Sepaton Closes $22M

MARLBOROUGH, Mass. -- SEPATON, Inc., the leader in high-performance data protection solutions, today announced that it has closed a new round of funding, securing $22 million in series E financing.New investor HarbourVest Partners led the funding round, which also included participation from existing investors Jerusalem Venture Partners (JVP), Menlo Ventures, and Valhalla Partners.

The financing will be used to further expand SEPATON's sales and service teams on a worldwide basis. In a separate release, the company today announced the opening of its first international office located in Beijing, China and disclosed plans to open a London, England office this quarter.The financing will also be used to accelerate the marketing of its award-winning family of advanced data protection solutions including the S2100R virtual tape libraries, DeltaStor(TM) data de-duplication software, and Site2(TM) remote replication software. The company will continue expanding its global customer base, spanning such vertical markets as consulting, financial services, government, healthcare, manufacturing, retail, and utilities.

"The addition of HarbourVest Partners to this funding round, as well as the renewed commitment from our existing investment partners based on SEPATON's strong market traction, clearly validates our strategy and direction," said Mike Worhach, president and CEO, SEPATON, Inc. "The strategic support and contribution of our investors has enabled SEPATON to establish itself as the category leader for enterprise-class advanced data protection. With these new funds, SEPATON will extend its U.S. market leadership to international fronts on a grand scale, as well as more aggressively invest in sales and marketing activities in North America."

"The data protection market is experiencing significant growth, especially from new data de-duplication technologies that allow enterprises to keep more data immediately available online while containing IT costs," said Ofer Nemirovsky, managing director, HarbourVest Partners, LLC. "In this competitive space, SEPATON is differentiated by its unique technological approach, which allows it to help customers backup more data in less time, and keep more data online longer, and for less cost, than other alternatives. SEPATON's products have been rapidly accepted by the market and the company has grown its customer base exponentially across key verticals and throughout the U.S., Asia, and Europe. We are excited to participate in the next phase of the company's success."

During the most recent two years, SEPATON's business has grown at triple-digit annual rates and the company has reached a number of critical milestones. Prominent among these were: the introduction and shipment of SEPATON's award-winning DeltaStor ContentAware data de-duplication software for its S2100 VTL series extending online data retention to meet data recovery SLAs; the introduction and shipment of its Site2 electronic vaulting software for remote replication and disaster recovery; the continued innovation of its flagship enterprise VTL which features industry-leading backup and restore performance, scalability and capacity; the company's selection by hundreds of leading businesses around the globe with a customer count that now tops 500 with more than 18 PB of data protected; the opening of its first international office in China; and thesigning of SEPATON's global OEM partnership agreement with HP.Sepaton Inc.