Wasabi Technologies has agreed to acquire Lyve Cloud, Seagate Technology’s cloud storage platform. In exchange, Seagate will receive an equity stake in Wasabi. The financial terms of the deal were not disclosed.
Seagate Refocuses on Its Core Business
For Seagate, the divestiture aligns with a strategy to concentrate on high-capacity data storage to meet surging demand. “This move fits into Seagate’s strategy, centered on its core activity in high-capacity data storage, to address rapidly growing demand,” explains Gianluca Romano, Chief Financial Officer of Seagate Technology.
An Enterprise Market Under Pressure
Enterprise cloud storage demand is rising quickly, driven by AI initiatives, analytics use cases, video workloads, and stricter data retention requirements. As volumes scale to petabytes, organizations are looking to simplify vendor management and favor offerings with transparent and predictable pricing.
Lyve Cloud had positioned itself in this enterprise segment with strong security and compliance guarantees. Wasabi, meanwhile, brings a global network of data centers, security features such as Covert Copy, AI-oriented capabilities, and a no-egress-fee pricing model.
A Strengthened Partner Ecosystem
The two players already have integrations with Veeam, Rubrik and Commvault. The acquisition thus reduces the need for customers and partners to juggle multiple S3-compatible storage providers.
“Our priority is to support the growth of Lyve Cloud customers by leveraging our global data center network, advanced security features and dedicated technical support,” said David Friend, co-founder and CEO of Wasabi Technologies.
The deal positions Wasabi as an independent alternative to hyperscalers in the enterprise cloud storage segment.
