Wasabi Technologies to Acquire Seagate’s Lyve Cloud Business
Growing its market footprint and solidifying its position
This is a Press Release edited by StorageNewsletter.com on April 15, 2026 at 2:01 pmWasabi Technologies, a hot cloud storage company, announced it will acquire the Lyve Cloud business from Seagate Technology LLC, a player in mass-capacity data storage.
Under the terms of the agreement, Seagate will receive equity in Wasabi and become a shareholder of the company. Additional financial terms were not disclosed.
“This acquisition strengthens our position as the world’s leading pure-play cloud storage vendor,” said David Friend, co-founder and CEO, Wasabi Technologies. “Seagate has built a loyal enterprise customer base for Lyve Cloud storage, and we welcome those customers to Wasabi. We are focused on supporting their growth with our global network of data centers, innovative security features such as Covert Copy, AI-ready capabilities, partner integration tools, and technical support.”
“This transaction is aligned with Seagate’s strategic focus on its core mass-capacity storage business to meet the surging demand for data storage, while ensuring Lyve Cloud customers continue receiving exceptional support through Wasabi, a dedicated, independent cloud storage provider,” said Gianluca Romano, CFO, Seagate Technology.
Strengthening Enterprise-Grade Cloud Storage
AI initiatives, analytics, video workloads, and longer data retention requirements are driving rapid growth in enterprise storage demand. As data volumes scale into the petabytes, organizations are re-evaluating cloud economics and seeking to reduce vendor complexity. Increasingly, they are choosing providers that deliver predictable pricing, strong security, and global performance at scale.
Lyve Cloud has long been positioned as an enterprise-ready storage platform with strong security and compliance capabilities. Combined with Wasabi’s focused execution, channel reach, and straightforward pricing model, the acquisition creates a powerful independent option for enterprise customers seeking predictable, cost-efficient storage deployments.
Expanded Ecosystem and Simplified Backup Integrations
Wasabi and Lyve Cloud share strong integration partnerships with leading data protection and backup providers, including Veeam, Rubrik, and Commvault. The combination simplifies the landscape for customers and channel partners by reducing the need to manage multiple S3-compatible storage vendors. The transaction strengthens Wasabi’s ability to serve enterprise backup and recovery workloads while maintaining cost-effective, predictable pricing outside the hyperscalers.
Comments
The Seagate initiative ultimately went nowhere. Many industry observers were puzzled when Seagate ventured into operating its own cloud storage service. While it was undeniably a legitimate business opportunity, as players like Wasabi continue to demonstrate, it always seemed like an odd strategic fit for Seagate. This echoes the same tension created by their systems and platform activities: competing directly with their own customers and partners. Meanwhile, Seagate would be better served directing its R&D resources toward the next generation of HDD technology.
Perhaps more surprising is that rather than a clean exit with a cash transaction, Seagate is taking an equity stake in Wasabi. The Boston-based company now finds itself meaningfully tied to Seagate. One could speculate this arrangement was partly a vehicle to negotiate favorable HDD pricing. At the end of the day, cloud storage, like several other storage segments, is fundamentally a $/TB game, and on that front, Wasabi has built a compelling and proven proposition over many years that is hard to beat.
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