Tomcat Inc. is selling its cloud-based storage platform, Tomcat 30, which will net $2.5 billion this year and $2 billion in 2018, the company said Thursday.
Tomcat said it sold 30 million units in its first three months of sale.
The price of the 30 million Tomcat shares was $13.20 per share.
The company expects to generate $9 billion of revenue this year, and $6 billion in 2020, TomCat Chief Executive Robert Ritter said in a statement.
“With this transaction, we’re able to accelerate the growth of the company,” Ritter wrote in the statement.
TomCat’s sales of Tomcat products, including its popular Tomcat Desktop, have surged since it first launched in 2006.
In 2017, Tomcats revenue was $1.2 billion.
In the last fiscal year, the Tomcat revenue grew by more than 60 percent, Ritter noted.
Tomcats most notable feature is its ability to store data on multiple devices simultaneously, such as in a home or office.
“It’s very much about being able to have one app on your phone, and then another app on another phone, which is very useful in the cloud,” Ritch said.
Tomatos cloud-hosting capabilities make it a good option for smaller businesses or home users, who don’t need a huge data center to handle their data, he said.
Ritch, a former Amazon.com Inc. CEO, will remain on the company’s board, as will Tomcat Chief Financial Officer Greg Miller.
The deal, which was first reported by Bloomberg, comes as the company is trying to boost its sales by creating more data centers.
Tomato, which makes a range of software products including software for automobiles and airplanes, has also made a play for enterprise customers, including financial institutions and health care providers.
Tom Cat has also been expanding its cloud offerings to provide access to cloud-powered data centers, which can also host applications, including cloud-running applications, Ritch noted.
“This acquisition will enable Tomcat to further enhance the value of our Tomcat platform, which now makes up about 50 percent of the business,” Miller said in the release.
The purchase will reduce Tomcat’s revenue from about $15 billion to about $10 billion by 2021, Miller said.