Author: Ron Miller

Fivetran hauls in $565M on $5.6B valuation, acquires competitor HVR for $700M



Fivetran, the data connectivity startup, had a big day today. For starters it announced a $565 million investment on $5.6 billion valuation, but it didn’t stop there. It also announced its second acquisition this year, snagging HVR, a data integration competitor that had raised over $50M, for $700 million in cash and stock.

The company last raised a $100 million Series C on a $1.2 billion valuation, increasing the valuation by over 5x. As with that Series C, Andreessen Horowitz was back leading the round with participation from other double dippers General Catalyst, CEAS Investments, Matrix Partners and other unnamed firms or individuals. New investors ICONIQ Capital, D1 Capital Partners and YC Continuity also came along for the ride. The company reports it has now raised $730 million.

The HVR acquisition represents a hefty investment for the startup, grabbing a company for a price that is almost equal to all the money it has raised to date, but it provides a way to expand its market quickly by buying a competitor. Earlier this year Fivetran acquired Teleport Data as it continues to add functionality and customers via acquisition.

“The acquisition — a cash and stock deal valued at $700 million — strengthens Fivetran’s market position as one of the data integration leaders for all industries and all customer types,” the company said in a statement.

While that may smack of corporate marketing speak, there is some truth (Read more...)

Intuit’s $12B Mailchimp acquisition is about expanding its small business focus



At first blush, the $12 billion Intuit-Mailchimp deal might not make a heck of a lot of sense. But people tend to pigeonhole companies, and in this case they might see Intuit as purely a financial software company and Mailchimp as an email marketing firm and nothing more. If that’s as far as your perspective goes, the deal is confusing. From a wider lens, however, there’s more to both companies than you might think.

Let’s start with Intuit. If you go to the company website and scan the product set, it’s clearly all about managing finances for consumer and small businesses alike. The latter category appears to be what the company wants to exploit and expand upon with this deal.

Prior to yesterday’s news, Intuit’s biggest acquisition had been on the consumer side buying Credit Karma for $7.1 billion last year. That deal gave the company’s customers a way to access their credit scores outside of the big three reporting companies: Experian, Equifax and TransUnion. Apparently not content with only that transaction, it set its sights on Mailchimp to throw some money at the business side of the house.

DigitalOcean enhances serverless capabilities with Nimbella acquisition



As developers look for ways to simplify how they create software, serverless solutions, which enable them to write code without worrying about the underlying infrastructure required to run their applications, is becoming increasingly popular. DigitalOcean announced today that it is enhancing its existing offering in this area with the acquisition of serverless startup Nimbella. The companies did not share the terms of the deal.

With Nimbella, the company is getting a platform for building serverless applications that is built on the open source container orchestration platform, Kubernetes and Apache OpenWhisk, which is itself an open source serverless development platform.

DigitalOcean CEO Yancey Spruill, who took over two years ago, refers to Nimbella’s capabilities as Function as a Service with the goal being to simplify serverless development in an open source context for its target customers.”Serverless kinds of capabilities are taking a whole level of the infrastructure burden away from developers and businesses and we absorb that. We’ll allow our customers to have more configurability around the tools, which just removes burdens for them and allows them to go faster,” he said.

In practical terms, Nimbella CEO Anshu Agarwal says that means they are providing a specific set of tools to build sophisticated serverless applications and connect to other DigitalOcean services. “The capabilities that we will be adding to DigitalOcean portfolio are a fast solution, a function as a service solution that also integrates with the underlying DigitalOcean services [like] managed databases, storage and other services that make it (Read more...)

Cisco beefing up app monitoring portfolio with acquisition of Epsagon for $500M



Cisco announced on Friday that it’s acquiring Israeli applications monitoring startup Epsagon at a price pegged at $500 million. The purchase gives Cisco a more modern microservices-focused component for its growing applications monitoring portfolio.

The Israeli business publication Globes reported it had gotten confirmation from Cisco that the deal was for $500 million, but Cisco would not confirm that price with TechCrunch.

The acquisition comes on top of a couple other high profile app monitoring deals including AppDynamics, which the company bought in 2018 for $3.7 billion and ThousandEyes, which it nabbed last year for $1 billion.

With Epsagon, the company is getting a way to monitor more modern applications built with containers and Kubernetes. Epsagon’s value proposition is a solution built from the ground up to monitor these kinds of workloads, giving users tracing and metrics, something that’s not always easy to do given the ephemeral nature of containers.

As Cisco’s Liz Centoni wrote in a blog post announcing the deal, Epsagon adds to the company’s concept of a full-stack offering in their applications monitoring portfolio. Instead of having a bunch of different applications monitoring tools for different tasks, the company envisions one that works together.

“Cisco’s approach to full-stack observability gives our customers the ability to move beyond just monitoring to a paradigm that delivers shared context across teams and enables our customers to deliver exceptional digital experiences, optimize for cost, security and performance and maximize digital business revenue,” Centoni (Read more...)

Airtable makes Bayes its first acquisition to up its data visualization game



Airtable, the makers of the no code relational database, announced its first acquisition today, acquiring Bayes, an early stage visualization startup. The purpose of the purchase is to enhance the data visualizations on the Airtable platform. The companies did not share the purchase price.

Much like Airtable, Bayes focuses on a no-code approach and the two companies have a shared vision about simplifying activities that once required engineering talent to pull off. Airtable CEO and co-founder Howie Liu says that while he hasn’t really been thinking about acquisitions, this opportunity came along and he liked how the team and product fit in with the Airtable no-code philosophy.

“We fell in love with the team and the product that they had built insofar as it showed us their vision for for doing data visualization in a really interesting and user friendly way that we thought would be applicable…and in spirit to be able to apply that kind of design thinking to Airtable’s product and enable our customers to basically better visualize their data,” Liu said.

Bayes’s four employees have joined Airtable and the plan is to shut down the product and incorporate the functionality into Airtable in the coming months.

Will Strimling, company co-founder says his startup matched up well with Airtable, which he said was a huge inspiration for his company since it launched in 2019. He said that it seemed like they could be better together after the two companies began (Read more...)

Apax to combine three social impact software companies in deal valued at $2B



Who says there is no big money in software aimed at helping people? Private equity firm Apax Funds announced this morning that it is combining three social impact firms to create a platform of sorts in a deal valued at $2 billion.

To build this social good juggernaut, Apax went out and purchased EveryAction from Insight Partners and Social Solutions from Vista Equity Partners, two firms we often see involved in SaaS deals.

The plan is to combine the two firms with CyberGrants, a company that Apax acquired in June. With EveryAction, companies get a customer engagement platform focused on the needs of nonprofits. Instead of trying to get people to buy more stuff, the goal would be to increase engagement with donors. Social Solutions is a tool for gathering data on an organization’s activities and taking advantage of that data to coordinate service delivery and measure how well you are doing with your service goals.

Finally, CyberGrants is a corporate responsibility platform designed to help companies create programs for employees to volunteer in the community and “maximize the impact of corporate philanthropy.”

Erin Mulligan Nelson, CEO of Social Solutions sees combining the three companies as a way to accelerate their individual efforts as companies. “Joining forces will empower human services agencies in both the non-profit and public sectors to fully capitalize on the opportunities for digital transformation. Our expanded offerings and opportunities for product innovation will (Read more...)

Marvell nabs Innovium for $1.1B as it delves deeper into cloud ethernet switches



Marvell announced this morning it has reached an agreement to acquire Innovium for $1.1 billion in an all-stock deal. The startup, which raised over $400 million according to Crunchbase data, makes networking ethernet switches optimized for the cloud.

Marvell president and CEO Matt Murphy sees Innovium as a complementary piece to the $10 billion Inphi acquisition last year, giving the company, which makes copper-based chips, more ways to work across modern cloud data centers.

“Innovium has established itself as a strong cloud data center merchant switch silicon provider with a proven platform, and we look forward to working with their talented team who have a strong track record in the industry for delivering multiple generations of highly successful products,” Marvell CEO Matt Murphy said in a statement.

Innovium founder and CEO Rajiv Khemani, who will remain as an advisor post-close, told a familiar tale from a startup CEO being acquired, seeing the sale as a way to accelerate more quickly as part of a larger organization than it could on its own. “As we engaged with Marvell, it became clear that our data center optimized portfolio combined with Marvell’s scale, leading technology platform and complementary portfolio, can accelerate our growth and vision of delivering breakthrough switch silicon for the cloud and edge,” he wrote in a company blog post announcing the deal.

The company, which was founded in 2014, raised more than $143 million last year (Read more...)

Salesforce steps into RPA buying Servicetrace and teaming it with Mulesoft



Over the last couple of years, Robotic Process Automation or RPA has been red hot with tons of investor activity and M&A from companies like SAP, IBM and ServiceNow. UIPath had a major IPO in April and has a market cap over $30 billion. I wondered when Salesforce would get involved and today the company dipped its toe into the RPA pool, announcing its intent to buy German RPA company Servicetrace.

Salesforce intends to make Servicetrace part of Mulesoft, the company it bought in 2018 for $6.5 billion. The companies aren’t divulging the purchase price, suggesting it’s a much smaller deal. When Servicetrace is in the fold, it should fit in well with Mulesoft’s API integration, helping to add an automation layer to Mulesoft’s tool kit.

“With the addition of Servicetrace, MuleSoft will be able to deliver a leading unified integration, API management, and RPA platform, which will further enrich the Salesforce Customer 360 — empowering organizations to deliver connected experiences from anywhere. The new RPA capabilities will enhance Salesforce’s Einstein Automate solution, enabling end-to-end workflow automation across any system for Service, Sales, Industries, and more,” Mulesoft CEO Brent Hayward wrote in a blog post announcing the deal.

While Einstein, Salesforce’s artificial intelligence layer, gives companies with more modern tooling the ability to automate certain tasks, RPA is suited to more legacy operations, and this acquisition could be another step in helping Salesforce bridge the gap (Read more...)

ServiceMax promises accelerating growth as key to $1.4B SPAC deal



ServiceMax, a company that builds software for the field-service industry, announced yesterday that it will go public via a special purpose acquisition company, or SPAC, in a deal valued at $1.4 billion. The transaction comes after ServiceMax was sold to GE for $915 million in 2016, before being spun out in late 2018. The company most recently raised $80 million from Salesforce Ventures, a key partner.

Broadly, ServiceMax’s business has a history of modest growth and cash consumption.

ServiceMax competes in the growing field-service industry primarily with ServiceNow, and interestingly enough given Salesforce Ventures’ recent investment, Salesforce Service Cloud. Other large enterprise vendors like Microsoft, SAP and Oracle also have similar products. The market looks at helping digitize traditional field service, but also touches on in-house service like IT and HR giving it a broader market in which to play.

GE originally bought the company as part of a growing industrial Internet of Things (IoT) strategy at the time, hoping to have a software service that could work hand in glove with the automated machine maintenance it was looking to implement. When that strategy failed to materialize, the company spun out ServiceMax and until now it remained part of Silver Lake Partners thanks to a deal that was finalized in 2019.

TechCrunch was curious why that was the case, so we dug into the company’s investor presentation for more hints about its financial performance. Broadly, ServiceMax’s business has a history of modest growth and cash consumption. It promises a (Read more...)

ZoomInfo drops $575M on Chrous.ai as AI shakes up the sales market



ZoomInfo announced this morning it intends to acquire conversational sales intelligence tool Chorus.AI for $575 million. Shares of ZoomInfo are unchanged in pre-market trading following the news, per Yahoo Finance data.

Sales intelligence, Chorus’s market, is a hot space that uses AI to “listen” to sales conversations to help improve interactions between salespeople and customers. ZoomInfo is mostly known for providing information about customers, so the acquisition expands the acquiring company’s platform in a significant way.

The company sees an opportunity to bring together different parts of the sales process in a single platform by “combining ZoomInfo’s historic top-of-the-funnel strength with insights driven from the middle of the funnel in the customer conversations that Chorus captures,” it said in a release.

“With Chorus, the entire organization can make better decisions by surfacing insights and analytics that you would only get if you sat in on every sales or customer success call,” ZoomInfo CEO and founder Henry Schuck said in a blog post announcing the deal.

Ahead of the transaction, ZoomInfo was valued at just under $21 billion.

Chorus looks for what it calls “smart themes” in sales calls, which help managers steer sales teams towards the types of conversation and tone that is likely to drive more revenue. In fact, Chorus holds the largest patent portfolio related to conversational intelligence, according to the company.

Chorus was founded in 2015 and raised over $100 million along (Read more...)