This morning we announced the evolution of Code42 with a major organizational change – the spin out of our legacy back-up business CrashPlan, which will now be owned and operated by Mill Point Capital. This news is just one more step on a path that has been charted for some time and I want to walk you through some of the key guideposts from that journey.
Twenty years ago, Code42 set out to solve one of the biggest challenges facing IT teams for businesses large and small – to keep their data safe. At the time, that meant backing up data effectively and efficiently, which led to the development of CrashPlan.
Over the course of the last two decades, the security of data has become much more complex. And so Code42’s mission grew – we became focused on securing the collaboration culture, not just the protection of data at rest. It was clear that the data needs of modern businesses had shifted from building fences around what’s important and keeping data ‘inside’ to creating fluid environments that allow for fast collaboration and file sharing between colleagues, partners and customers.
Building on the success of CrashPlan, in 2018 Code42 entered the cybersecurity market with an offering designed to detect, measure and contextualize Insider Risk – the risk created within organizations by its own employees. Late that year, we launched Incydr – today the fastest growing Insider Risk Management software on the market, which quickly became a critical tool in the fight against data leaks as the world shifted to remote work. In 2021, we followed Incydr with the launch of Code42 Instructor, a product offering rooted in education and training, rounding out Code42’s control and response capabilities.
Initially, this was a natural progression of Code42’s core mission to protect data and ideas. In the four years since we pioneered the Insider Risk Management (IRM) category, however, the way the world works has dramatically shifted, making our IRM solution – today made up of Incydr, Instructor and a services offering – increasingly critical to protecting businesses, data and the people within them.
In late 2021, the demand placed on Code42 to develop the IRM market fundamentally impacted the way we were able to grow CrashPlan. That is when Code42 formally established the CrashPlan Group (CPG) within Code42 to better focus and consolidate resources dedicated to meeting the needs of its long-standing data backup and IT customers. At the same time, Code42’s security business had made tremendous strides and grown >100% YoY over the past three years. We are currently the leader in the Insider Risk Management category.
The needs of these increasingly divergent businesses led us to where we are today – announcing the spin out of CrashPlan.
Now owned and operated by Mill Point Capital, the CrashPlan Group will benefit from focused operational and customer support investments that maintain the predictable revenue and cash-flow from its large base of Small-Business to Enterprise IT buyers.
As a CEO, this transaction marks a bittersweet milestone. Today the Code42 team bids farewell to friends and colleagues whom we have worked alongside for years – they are a group of innovators and community leaders who care deeply about the success of their customers. While CrashPlan has been an integral part of the Code42 story, we expect to see great things from this team in the future as they re-energize the CrashPlan business. We feel confident we have left CrashPlan customers in exceedingly capable hands.
As Code42 continues to forge ahead, we now have deep capital reserves and will invest heavily in innovation and go-to-market to capture the significant growth opportunities with enterprise security buyers and retain our leadership position in the Insider Risk Management space. With a laser-focus, Code42 will continue to give security teams visibility into what data is being exfiltrated from their environments in today’s collaboration-first world.
For more details about the transaction, read our press release.