IBM acquires Italy’s MyInvenio to integrate process mining directly into its suite of automation tools

Automation has become a big theme in enterprise IT, with organizations using RPA, no-code and low-code tools, and other  technology to speed up work and bring more insights and analytics into how they do things every day, and today IBM is announcing an acquisition as it hopes to take on a bigger role in providing those automation services. The IT giant has acquired MyInvenio, an Italian startup that builds and operates process mining software.

Process mining is the part of the automation stack that tracks data produced by a company’s software, as well as how the software works, in order to provide guidance on what a company could and should do to improve it. In the case of myInvenio, the company’s approach involves making a “digital twin” of an organization to help track and optimize processes. IBM is interested in how myInvenio’s tools are able to monitor data in areas like sales, procurement, production and accounting to help organizations identify what might be better served with more automation, which it can in turn run using RPA or other tools as needed.

Terms of the deal are not being disclosed. It is not clear if myInvenio had any outside investors (we’ve asked and are awaiting a response). This is the second acquisition IBM has made out of Italy. (The first was in 2014, a company called CrossIdeas that now forms part of the company’s security business.)

IBM and myInvenio are not exactly strangers: the two inked a deal as recently as November 2020 to integrate the Italian startup’s technology into IBM’s bigger automation services business globally.

Dinesh Nirmal, GM of IBM Automation, said in an interview that the reason IBM acquired the company was two-fold. First, it lets IBM integrate the technology more closely into the company’s Cloud Pak for Business Automation, which sits on and is powered by Red Hat OpenShift and has other automation capabilities already embedded within it, specifically robotic process automation (RPA), document processing, workflows and decisions.

Second and perhaps more importantly, it will mean that IBM will not have to tussle for priority for its customers in competition with other solution partners that myInvenio already had. IBM will be the sole provider.

“Partnerships are great but in a partnership you also have the option to partner with others, and when it comes to priority who decides?” he said. “From the customer perspective, will they will work just on our deal, or others first? Now, our customers will get the end result of this… We can bring a single solution to an end user or an enterprise, saying, ‘look you have document processing, RPA, workflow, mining. That is the beauty of this and what customers will see.”

He said that IBM currently serves customers across a range of verticals including financial, insurance, healthcare and manufacturing with its automation products.

Notably, this is not the first acquisition that IBM has made to build out this stack. Last year, it acquired WDG to expand into robotic process automation.

And interestingly, it’s not even the only partnership that IBM has had in process mining. Just earlier this month, it announced a deal with one of the bigger names in the field, Celonis, a German startup valued at $2.5 billion in 2019.

Ironically, at the time, my colleague Ron wondered aloud why IBM wasn’t just buying Celonis outright in that deal. It’s hard to speculate if price was one reason. Remember: we don’t know the terms of this acquisition, but given myInvenio was off the fundraising radar, chances are it’s possibly a little less than Celonis’s pricetag.

We’ve asked and IBM has confirmed that it will continue to work with Celonis alongside now offering its own native process mining tools.

“In keeping with IBM’s open approach and $1 billion investment in ecosystem, [Global Business Services, IBM’s enterprise services division] works with a broad range of technologies based on client and market demand, including IBM AI and Automation software,” a spokesperson said in a statement. “Celonis focuses on execution management which supports GBS’ transformation of clients’ business processes through intelligent workflows across industries and domains. Specifically, Celonis has deep connectivity into enterprise systems such as Salesforce, SAP, Workday or ServiceNow, so the Celonis EMS platform helps GBS accelerate clients’ transformations and BPO engagements with these ERP platforms.”

Indeed, at the end of the day, companies that offer services, especially suites of services, are working in environments where they have to be open to customers using their own technology, or bringing in something else.

There may have been another force pushing IBM to bring more of this technology in-house, and that’s wider competitive climate. Earlier this year, SAP acquired another European startup in the process mining space, Signavio, in a deal reportedly worth about $1.2 billion. As more of these companies get snapped up by would-be IBM rivals, and those left standing are working with a plethora of other parties, maybe it was high time for IBM to make sure it had its own horse in the race.

“Through IBM’s planned acquisition of myInvenio, we are revolutionizing the way companies manage their process operations,” said Massimiliano Delsante, CEO, myInvenio, who will be staying on with the deal. “myInvenio’s unique capability to automatically analyze processes and create simulations — what we call a ‘Digital Twin of an Organization’ —  is joining with IBM’s AI-powered automation capabilities to better manage process execution. Together we will offer a comprehensive solution for digital process transformation and automation to help enterprises continuously transform insights into action.”

#automation, #enterprise, #europe, #fundings-exits, #ibm, #italy, #ma, #myinvenio, #process-mining, #rpa

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Microsoft goes all in on healthcare with $19.7B Nuance acquisition

When Microsoft announced it was acquiring Nuance Communications this morning for $19.7 billion, you could be excused for doing a Monday morning double take at the hefty price tag.

That’s surely a lot of money for a company on a $1.4 billion run rate, but Microsoft, which has already partnered with the speech-to-text market leader on several products over the last couple of years, saw a company firmly embedded in healthcare and it decided to go all in.

And $20 billion is certainly all in, even for a company the size of Microsoft. But 2020 forced us to change the way we do business from restaurants to retailers to doctors. In fact, the pandemic in particular changed the way we interact with our medical providers. We learned very quickly that you don’t have to drive to an office, wait in waiting room, then in an exam room, all to see the doctor for a few minutes.

Instead, we can get on the line, have a quick chat and be on our way. It won’t work for every condition of course — there will always be times the physician needs to see you — but for many meetings such as reviewing test results or for talk therapy, telehealth could suffice.

Microsoft CEO Satya Nadella says that Nuance is at the center of this shift, especially with its use of cloud and artificial intelligence, and that’s why the company was willing to pay the amount it did to get it.

“AI is technology’s most important priority, and healthcare is its most urgent application. Together, with our partner ecosystem, we will put advanced AI solutions into the hands of professionals everywhere to drive better decision-making and create more meaningful connections, as we accelerate growth of Microsoft Cloud in Healthcare and Nuance,” Nadella said in a post announcing the deal.

Microsoft sees this deal doubling what was already a considerable total addressable market to nearly $500 billion. While TAMs always tend to run high, that is still a substantial number.

It also fits with Gartner data, which found that by 2022, 75% of healthcare organizations will have a formal cloud strategy in place. The AI component only adds to that number and Nuance brings 10,000 existing customers to Microsoft including some of the biggest healthcare organizations in the world.

Brent Leary, founder and principal analyst at CRM Essentials, says the deal could provide Microsoft with a ton of health data to help feed the underlying machine learning models and make them more accurate over time.

“There is going be a ton of health data being captured by the interactions coming through telemedicine interactions, and this could create a whole new level of health intelligence,” Leary told me.

That of course could drive a lot of privacy concerns where health data is involved, and it will be up to Microsoft, which just experienced a major breach on its Exchange email server products last month, to assure the public that their sensitive health data is being protected.

Leary says that ensuring data privacy is going to be absolutely key to the success of the deal. “The potential this move has is pretty powerful, but it will only be realized if the data and insights that could come from it are protected and secure — not only protected from hackers but also from unethical use. Either could derail what could be a game changing move,” he said.

Microsoft also seemed to recognize that when it wrote, “Nuance and Microsoft will deepen their existing commitments to the extended partner ecosystem, as well as the highest standards of data privacy, security and compliance.”

We are clearly on the edge of a sea change when it comes to how we interact with our medical providers in the future. COVID pushed medicine deeper into the digital realm in 2020 out of simple necessity. It wasn’t safe to go into the office unless absolutely necessary.

The Nuance acquisition, which is expected to close some time later this year, could help Microsoft shift deeper into the market. It could even bring Teams into it as a meeting tool, but it’s all going to depend on the trust level people have with this approach, and it will be up to the company to make sure that both healthcare providers and the people they serve have that.

#artificial-intelligence, #cloud, #enterprise, #ma, #mergers-and-acquisitions, #microsoft, #nuance-communications, #privacy, #tc, #telemedicine

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Microsoft is acquiring Nuance Communications for $19.7B

Microsoft agreed today to acquire Nuance Communications, a leader in speech to text software, for $19.7 billion. Bloomberg broke the story over the weekend that the two companies were in talks.

In a post announcing the deal, the company said this was about increasing its presence in the healthcare vertical, a place where Nuance has done well in recent years. In fact, the company announced the Microsoft Cloud for Healthcare last year, and this deal is about accelerating its presence there. Nuance’s products in this area include Dragon Ambient eXperience, Dragon Medical One and PowerScribe One for radiology reporting.

“Today’s acquisition announcement represents the latest step in Microsoft’s industry-specific cloud strategy,” the company wrote. The acquisition also builds on several integrations and partnerships the two companies have made in the last couple of years.

The company boasts 10,000 healthcare customers, according to information on the website. Those include AthenaHealth, Johns Hopkins, Mass General Brigham and Cleveland Clinic to name but a few, and it was that customer base that attracted Microsoft to pay the price it did to bring Nuance into the fold.

Nuance CEO Mark Benjamin will remain with the company and report to Scott Guthrie, Microsoft’s EVP in charge of the cloud and AI group.

Nuance has a complex history. It went public in 2000 and began buying speech recognition products including Dragon Dictate from Lernout Hauspie in 2001. It merged with a company called ScanSoft in 2005. That company began life as Visioneer, a scanning company in 1992.

Today, the company has a number of products including Dragon Dictate, a consumer and business text to speech product that dates back to the early 1990s. It’s also involved in speech recognition, chat bots and natural language processing particularly in healthcare and other verticals.

The company has 6,000 employees spread across 27 countries. In its most recent earnings report from November 2020, which was for Q42020, the company reported $352.9 million in revenue compared to $387.6 million in the same period a year prior. That’s not the direction a company wants to go in, but it is still a run rate of over $1.4 billion.

At the time of that earnings call, the company also announced it was selling its medical transcription and electronic health record (EHR) Go-Live services to Assured Healthcare Partners and Aeries Technology Group. Company CEO Benjamin said this was about helping the company concentrate on its core speech services.

“With this sale, we will reach an important milestone in our journey towards a more focused strategy of advancing our Conversational AI, natural language understanding and ambient clinical intelligence solutions,” Benjamin said in a statement at the time.

It’s worth noting that Microsoft already has a number speech recognition and chat bot products of its own including desktop speech to text services in Windows and on Azure, but it took a chance to buy a market leader and go deeper into the healthcare vertical.

The transaction has already been approved by both company boards and Microsoft reports it expects the deal to close by the end of this year, subject to standard regulatory oversight and approval by Nuance shareholders.

This would mark the second largest purchase by Microsoft ever, only surpassed by the $26.2 billion the company paid for LinkedIn in 2016.

#artificial-intelligence, #enterprise, #ma, #mergers-and-acquisitions, #microsoft, #nuance-communications, #tc

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AppHarvest buys ag-robotics firm, Root AI

Indoor farming company AppHarvest this week announced that it has acquired Root AI. The deal is valued at around $60 million, with $10 million in cash and the reminder coming from AppHarvest stock.

Root AI is a Boston-based robotics startup, with a mission fairly in line with that of its future parent company. We’ve covered the startup a handful of times, including last August, when it announced a $7.2 million seed round. Robotics, generally, have gotten a boost during the pandemic, but agriculture and food production have gotten special looks, as organizations are looking for ways to automate their processes.

Including the aforementioned seed, Root has raised a total of $9.5 million to date, fueled by interest in its Virgo harvesting system. Founder and CEO Josh Lessing will step into a CTO role at AppHarvest if the acquisition clears. The startup is still fairly lean, with 19 full-time employees.

According to quotes from both parties, robot-gathered data for crop yields is a key part of the acquisition.

“Farming as we’ve known it is broken because of the increasing number of variables such as extreme weather, droughts, fire and contamination by animals that make our food system unreliable,” AppHarvest founder and CEO Jonathan Webb said in a release tied to the news. Indoor farming solves for many of those challenges, and the data gathered can exponentially deliver more insights that help us predict and control crop quality and yield.”

#agriculture, #appharvest, #ma, #robotics, #root-ai

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Twitter said to have held acquisition talks with Clubhouse on potential $4B deal

Twitter held talks with Clubhouse around a potential acquisition of the live drop-in audio networking platform, with a deal value somewhere around $4 billion, according to a report from Bloomberg. TechCrunch has also confirmed the discussions took place from a source familiar with the conversations.

While the talks occurred over the past several months, they’re no longer taking place, though the reason they ended isn’t known according to the report. It’s also worth noting that just a few days ago, Bloomberg reported that Clubhouse was seeking to raise a new round of funding at a valuation of around $4 billion, but the report detailing the potential acquisition talks indicate that the discussions with Twitter collapsed first, leading to a change in strategy to pursue securing additional capital in exchange for equity investment.

Twitter has its own product very similar to Clubhouse — Spaces, a drop-in audio chatroom feature that it has been rolling out gradually to its user base over the past few months. Clubhouse, meanwhile, just launched the first of its monetization efforts, Clubhouse Payments, which lets users send direct payments to other creators on the platform, provided that person has enabled receipt of said payments.

Interestingly, the monetization effort from Clubhouse actually doesn’t provide them with any money; instead, it’s monetization for recipient users who get 100% of the funds directed their way, minus a small cut for processing that goes directly to Stripe, the payment provider Clubhouse is using to enable the virtual tips.

While we aren’t privy to the specifics of these talks between Twitter and Clubhouse, it does seem like an awfully high price tag for the social network to pay for the audio app, especially given its own progress with Spaces. Clubhouse’s early traction has been undeniable, but there are a lot of questions still remaining about its longevity, and it’s also being cloned left and right by other platforms, begging the age-old startup question of whether it’s a feature or a product on its own.

Whatever went down, the timing of this revelation seems likely to prime the pump for Clubhouse’s conversation with potential investors at its target valuation for the round it’s looking to raise. Regardless, it’s exciting to have this kind of activity, buzz and attention paid to a consumer software play after many years of what one could argue has been a relatively lacklustre period for the category.

#apps, #clubhouse, #computing, #freeware, #internet-culture, #ma, #mobile-applications, #monetization, #operating-systems, #social-media, #social-network, #software, #startups, #tc, #twitter, #valuation

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Acorns’ new fintech target is debt management with acquisition of Pillar

Popular saving and investing app Acorns has acquired Pillar, an AI-powered startup built to help manage student loan debt, in its second acquisition of 2021.

New York-based Pillar helps consumers optimize their debt payments by focusing first on student loans. It launched in May 2019 with $5.5 million in seed funding led by Kleiner Perkins. The companies declined to reveal the financial terms of the deal, only noting that within six months of launching, Pillar managed over $500 million worth of student loan debt of more than 15,000 borrowers. 

Michael Bloch dropped out of Stanford Business School and co-founded Pillar after he and his wife had amassed more than $500,000 of student loan debt after she graduated from law school. Prior to that, he had led the Strategy & Operations division for DoorDash, growing it to $100 million in revenue. The problem Pillar has aimed to tackle is massive. Student loan debt is the second-largest type of consumer debt in the U.S., with 45 million borrowers collectively owing nearly $1.7 trillion in student loans.

Notably, Acorns was apparently one of several companies that had courted Pillar.

“We were in a pretty lucky position to have a lot of interest from many of the top fintech companies that are out there,” Bloch told TechCrunch. “We had multiple offers on the table and Acorns was really our top choice just given how the business has been doing and the team, the culture and the mission.”

The deal marks the second acquisition this year and third overall for Acorns, which says it notched its strongest quarter in its history the first three months of this year. In March, Acorns also acquired Harvest, a fintech that helped customers reduce more than $4 million in debt in 2020.

The Pillar and Harvest teams will help Acorns accelerate its product roadmap of helping customers pay down debt, “an essential part of the financial wellness system,” said CEO and founder Noah Kerner.

Over time, Pillar will become part of one of Acorns’ monthly subscription tiers. 

“The IP and technology that the Pillar team created in debt management is really interesting to us when we think about how we scale our Smart Deposit feature,” Kerner said.

With Smart Deposit, when a customer’s paycheck hits the Acorns bank account, the app automatically allocates a percentage of that paycheck into an individual’s different investment accounts. 

“From a behavioral perspective, the best way to get somebody to save and invest is to enable them to set aside a piece of their paycheck as soon as it hits the account so that they don’t spend it. That feature has been really well adopted by our direct deposit customers,” Kerner said. “And so Michael and his team are coming in to manage that feature, and also our bank accounts product. I think their past experience is going to be really useful for us to take what we have and help the team catalyze it further.”

With its latest acquisition, Irvine, California-based Acorns now has more than 350 employees. In 2017, the company acquired Vault, now called “Acorns Later.” As a result of that acquisition, the company has seen its number of retirement accounts grow to 1.2 million from 500.

As mentioned above, Acorns has had a good year so far. In the first six weeks of 2021, the company added nearly 600,000 new accounts, reaching a total of more than 9 million users having saved and invested a total of $7.5 billion.

“The first quarter was our biggest growth quarter on record,” Kerner told TechCrunch. “In particular we crossed the $4.3 billion in dollars in assets under management, which is a really exciting milestone when you think about the fact that these are customers that are saving small amounts of money in the relative scheme of money invested typically.”

#acorns, #artificial-intelligence, #bank, #debt, #exit, #finance, #financial-services, #financial-technology, #fundings-exits, #kleiner-perkins, #loans, #ma, #mergers-and-acquisitions, #new-york, #pillar, #startups, #student-debt, #student-loan

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Avant doubles down on digital banking with Zero Financial acquisition

Avant, an online lender that has raised over $600 million in equity, announced today that it has acquired Zero Financial and its neobank brand, Level, to further its mission of becoming a digital bank for the masses.

Founded in 2012, Chicago-based Avant started out primarily as an online lender targeting “underserved consumers,” but is evolving into digital banking with this acquisition. The company notched gross revenue of $265 million in 2020 and has raised capital over the years from backers such as General Atlantic and Tiger Global Management.

“Our path has always been to become the premier digital bank for the everyday American,” Avant CEO James Paris told TechCrunch. “The massive transition to digital over the last 12 months made the timing right to expand our offerings.” 

The acquisition of Zero Financial and its neobank, Level (plus its banking app assets), will give Avant the ability to offer “a full ecosystem of banking and credit product offerings” through one fully digital platform, according to Paris. Those offerings include deposits, personal loans, credit cards and auto loans.

Financial terms of the deal weren’t disclosed other than the fact that the acquisition was completed with a combination of cash and stock.

Founded in 2016, San Francisco-based Zero Financial has raised $147 million in debt and equity, according to Crunchbase. New Enterprise Associates (NEA) led its $20 million Series A in May of 2019.

Level was unveiled to the public in February of 2020, created by the same California-based team that founded the “debit-style” credit card offering Zero, according to this FintechFutures piece. The challenger bank was created to target millennials dissatisfied with the incumbent banking options.

Zero Financial co-founder and CEO Bryce Galen said that Avant shared his company’s mission “to challenge the status quo by bringing innovative financial services products to consumers who might otherwise be unable to access them.”

Avant, notes Paris, uses thousands of AI-driven data points to determine credit risk. With this acquisition, that lens will be expanded with data, such as a deposit customer’s cash flow, how they manage their finances and whether they pay their bills on time. 

“This will allow us to make credit decisions faster and deliver personalized options to help underbanked consumers gain financial freedom, at any and every stage of their financial journey,” Paris told TechCrunch. “It will also build long-term engagement and loyalty and help grow our reach beyond the 1.5 million customers we’ve served to date.”  

Like a growing number of fintechs, Avant operates under the premise that a person’s ability to get credit shouldn’t be dictated by a credit score alone.

“A significant amount of Americans have poor, bad or no credit at all. For these people, accessing credit isn’t exactly easy and often comes with extra fees,” Paris said. That’s why, he added, Avant has focused on providing options for such consumers with “transparent, rewards-driven products.”

Level’s branchless, all-digital platform offers things such as cashback rewards on debit card purchases, a “competitive APY” on deposits, early access to paychecks and no hidden fees, all of which are especially beneficial for consumers on the path to financial freedom, according to Paris.

Since its inception in 2012, Avant has connected more than 1.5 million consumers to $7.5 billion in loans and 400,000 credit cards. The company launched its credit card in 2017 and over the past two years alone, it has grown its number of credit card users by 170%.

#apps, #artificial-intelligence, #avant, #bank, #banking, #california, #challenger-bank, #chicago, #credit-card, #debit-card, #digital-banking, #economy, #exit, #finance, #funding, #general-atlantic, #level, #ma, #money, #premier, #san-francisco, #startups, #tc, #tiger-global-management, #zero-financial

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Testing platform Tricentis acquires performance testing service Neotys

If you develop software for a large enterprise company, chances are you’ve heard of Tricentis. If you don’t develop software for a large enterprise company, chances are you haven’t. The software testing company with a focus on modern cloud and enterprise applications was founded in Austria in 2007 and grew from a small consulting firm to a major player in this field, with customers like Allianz, BMW, Starbucks, Deutsche Bank, Toyota and UBS. In 2017, the company raised a $165 million Series B round led by Insight Venture Partners.

Today, Tricentis announced that it has acquired Neotys, a popular performance testing service with a focus on modern enterprise applications and a tests-as-code philosophy. The two companies did not disclose the price of the acquisition. France-based Neotys launched in 2005 and raised about €3 million before the acquisition. Today, it has about 600 customers for its NeoLoad platform. These include BNP Paribas, Dell, Lufthansa, McKesson and TechCrunch’s own corporate parent, Verizon.

As Tricentis CEO Sandeep Johri noted, testing tools were traditionally script-based, which also meant they were very fragile whenever an application changed. Early on, Tricentis introduced a low-code tool that made the automation process both easier and resilient. Now, as even traditional enterprises move to DevOps and release code at a faster speed than ever before, testing is becoming both more important and harder for these companies to implement.

“You have to have automation and you cannot have it be fragile, where it breaks, because then you spend as much time fixing the automation as you do testing the software,” Johri said. “Our core differentiator was the fact that we were a low-code, model-based automation engine. That’s what allowed us to go from $6 million in recurring revenue eight years ago to $200 million this year.”

Tricentis, he added, wants to be the testing platform of choice for large enterprises. “We want to make sure we do everything that a customer would need, from a testing perspective, end to end. Automation, test management, test data, test case design,” he said.

The acquisition of Neotys allows the company to expand this portfolio by adding load and performance testing as well. It’s one thing to do the standard kind of functional testing that Tricentis already did before launching an update, but once an application goes into production, load and performance testing becomes critical as well.

“Before you put it into production — or before you deploy it — you need to make sure that your application not only works as you expect it, you need to make sure that it can handle the workload and that it has acceptable performance,” Johri noted. “That’s where load and performance testing comes in and that’s why we acquired Neotys. We have some capability there, but that was primarily focused on the developers. But we needed something that would allow us to do end-to-end performance testing and load testing.”

The two companies already had an existing partnership and had integrated their tools before the acquisition — and many of its customers were already using both tools, too.

“We are looking forward to joining Tricentis, the industry leader in continuous testing,” said Thibaud Bussière, president and co-founder at Neotys. “Today’s Agile and DevOps teams are looking for ways to be more strategic and eliminate manual tasks and implement automated solutions to work more efficiently and effectively. As part of Tricentis, we’ll be able to eliminate laborious testing tasks to allow teams to focus on high-value analysis and performance engineering.”

NeoLoad will continue to exist as a stand-alone product, but users will likely see deeper integrations with Tricentis’ existing tools over time, include Tricentis Analytics, for example.

Johri tells me that he considers Tricentis one of the “best kept secrets in Silicon Valley” because the company not only started out in Europe (even though its headquarters is now in Silicon Valley) but also because it hasn’t raised a lot of venture rounds over the years. But that’s very much in line with Johri’s philosophy of building a company.

“A lot of Silicon Valley tends to pay attention only when you raise money,” he told me. “I actually think every time you raise money, you’re diluting yourself and everybody else. So if you can succeed without raising too much money, that’s the best thing. We feel pretty good that we have been very capital efficient and now we’re recognized as a leader in the category — which is a huge category with $30 billion spend in the category. So we’re feeling pretty good about it.”

#allianz, #austria, #bnp-paribas, #computing, #dell, #deutsche-bank, #developer, #devops, #enterprise, #insight-venture-partners, #lufthansa, #ma, #neotys, #software-engineering, #software-testing, #starbucks, #toyota, #tricentis, #ubs, #verizon

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Everlywell acquires two healthcare companies and forms parent Everly Health

Austin-based home lab testing kit startup Everlywell is expanding its scope considerably with two acquisitions, and a transformation that includes the establishment of a new parent company led by Everlywell CEO and co-founder Julia Cheek. The new entity, called Everly Health, will now offers services including at-home lab testing kits and education, population-scale testing through a U.S.-wide clinician network, telehealth and payer-supported/enterprise self-collected lab test.

This is a big move for Everlywell, which was found in 2015 (and which was a finalist in TechCrunch’s 2016 Disrupt SF Battlefield completion). The company has steadily iterated on its offerings, expanding its at-home testing from fertility products, to food sensitivities and allergies, and last year, to at home COVID-19 test collection.

Everly Health’s business now includes not only that kind of at-home consumer diagnostic and personal health education, but also many relationships through PWNHealth, which will rebrand to Everly Health Solutions, with health plans, employers and labs across the U.S.

Everlywell itself was actually a longtime partner of PNWHealth, which is what Cheek told me an in interview actually helped make the acquisition make so much sense to both companies. They’d been working together for years, and that collaboration had only deepened in the wake of the COVID-19 pandemic.

“What we found over the last year, was we were collaborating on all these different enterprise partnerships to offer solutions, and so our cultures are really well aligned, and our teams have worked closely together,” she said. “And we both share this common ethos that we felt the urgent need to help people and to save lives, but also this discipline around consumer-friendly and enabled care, grounded in diagnostics.”

Overall, Cheek said that the decision to go out and acquire the pieces of the puzzle needed to deliver a more comprehensive care offering was partly driven by the pandemic, but that really just drove an acceleration of what Everlywell was already beginning to see before COVID-19. Freshly capitalized with the $175 million it raised last December, the startup was in a position to make some bold moves in order to make the most of the moment.

“Before the pandemic, but especially during and looking out to post-pandemic, we have just seen this massive acceleration of the need for consumer friendly testing services,” she said. “Our business has continued to grow exponentially, even since normal doctor’s appointments resumed, orders of magnitude, 300% growth. We sat back and said, since we believe healthcare is in a watershed moment post-pandemic, where do we think we need to actually be to be able to offer a full-service diagnostic solution as this entire space grows. So it’s Everlywell as a consumer friendly brand, but it’s also this massive enterprise need for home testing, and broader consumer diagnostics.”

The new acquisitions do add some complexity to Everly Health’s business, since its Everly Health Solutions also serves a number of customers that would be considered competitive with Everlywell. Cheek points out that both businesses have a demonstrated track record of security and data integrity, compliant with HIPAA standards, and says that they’re setting up a strict firewall that will result in “complete data independence” of Everly Health Solutions to ensure there’s no possibility of anti-competitive behavior.

The companies will however share customer experience, design and product resources, however, and the plan is to build a unified brand focused on high-quality customer engagement across the board.

Everly Health hasn’t released the financial details of the transaction, but it has shared shared that PWNHealth CEO Sanjay Pingle will be acting in a transitional role in the combined company for the time being, and will serve on the board of Everly Health. Investors in PWNHealth, including Spectrum Equity, and Blue Cross/Blue Shield corporate VC Blue Venture Fund will also retain an ownership stake in Everly Health.

#acquisitions, #articles, #austin, #battlefield, #ceo, #everlywell, #firewall, #healthcare, #ma, #science-and-technology, #spectrum-equity, #tc, #technology, #telehealth, #united-states

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OneTrust adds ethics to its privacy platform with Convercent acquisition

OneTrust, a late stage privacy platform startup, announced it was adding ethics and compliance to the mix this morning by acquiring Convercent, a company that was built to help build more ethical organizations. The companies did not share the purchase price.

OneTrust just raised $300 million on a fat $5.1 billion valuation at the end of last year, and it’s putting that money to work with this acquisition. Alan Dabbiere, co-chairman at OneTrust sees this acquisition as a way to add a missing component to his company’s growing platform of services.

“OneTrust instantly brings a proven ethics and compliance technology, team, and customer base into the OneTrust, further aligning the Chief Ethics & Compliance Officer strategy alongside privacy, data governance, third-party risk, GRC (governance, risk and compliance), and ESG (environmental, social and governance) to build trust as a competitive advantage,” he said.

Convercent brings 750 customers and 150 employees to the OneTrust team along with its ethics system, which includes a way for employees to report ethical violations to the company and a tool for managing disclosures.

Convercent can also use data to help surface bad behavior before it’s been reported. As CEO Patrick Quinlan explained in a 2018 TechCrunch article:

“Sometimes you have this interactive code of conduct, where there’s a new vice president in a region and suddenly page views on the sexual harassment section of the Code of Conduct have increased 200% in the 90 days after he started. That’s easy, right? There’s a reason that’s happening, and our system will actually tell you what’s happening.”

Quinlan wrote in a company blog post announcing the deal that joining forces with OneTrust will give it the resources to expand its vision.

“As a part of OneTrust, we’ll be combining forces with the leader across privacy, security, data governance, third-party risk, GRC, ESG—and now—ethics and compliance. Our customers will now be able to build centralized programs across these workstreams to make trust a competitive differentiator,” Quinlan wrote.

Convercent was founded in 2012 and has raised over $100 million, according to Pitchbook data. OneTrust was founded in 2016. It has over 8000 customers and 150 employees and has raised $710 million, according to the company.

#convercent, #enterprise, #ethics, #exit, #fundings-exits, #ma, #mergers-and-acquisitions, #onetrust, #privacy, #security, #startups, #tc

0

ServiceNow takes RPA plunge by acquiring India-based startup Intellibot

ServiceNow became the latest company to take the robotic process automation (RPA) plunge when it announced it was acquiring Intellibot, an RPA startup based in Hyderabad, India. The companies did not reveal the purchase price.

The purchase comes at a time where companies are looking to automate workflows across the organization. RPA provides a way to automate a set of legacy processes, which often involve humans dealing with mundane repetitive work.

The announcement comes on the heels of the company’s no-code workflow announcements earlier this month and is part of the company’s broader workflow strategy, according to Josh Kahn, SVP of Creator Workflow Products at ServiceNow.

“RPA enhances ServiceNow’s current automation capabilities including low code tools, workflow, playbooks, integrations with over 150 out of the box connectors, machine learning, process mining and predictive analytics,” Khan explained. He says that the company can now bring RPA natively to the platform with this acquisition, yet still use RPA bots from other vendors if that’s what the customer requires.

“ServiceNow customers can build workflows that incorporate bots from the pure play RPA vendors such as Automation Anywhere, UiPath and Blue Prism, and we will continue to partner with those companies. There will be many instances where customers want to use our native RPA capabilities alongside those from our partners as they build intelligent, end-to-end automation workflows on the Now Platform,” Khan explained.

The company is making this purchase as other enterprise vendors enter the RPA market. SAP announced a new RPA tool at the end of December and acquired process automation startup Signavio in January. Meanwhile Microsoft announced a free RPA tool earlier this month, as the space is clearly getting the attention of these larger vendors.

ServiceNow has been on a buying spree over the last year or so buying five companies including Element AI, Loom Systems, Passage AI and Sweagle. Khan says the acquisitions are all in the service of helping companies create automation across the organization.

“As we bring all of these technologies into the Now Platform, we will accelerate our ability to automate more and more sophisticated use cases. Things like better handling of unstructured data from documents such as written forms, emails and PDFs, and more resilient automations such as larger data sets and non-routine tasks,” Khan said.

Intellibot was founded in 2015 and will provide the added bonus of giving ServiceNow a stronger foothold in India. The companies expect to close the deal no later than June.

 

#automation, #cloud, #enterprise, #exit, #fundings-exits, #ma, #mergers-and-acquisitions, #rpa, #servicenow, #startups, #tc

0

Seven months after Drone acquisition, Harness announces significant updates

The running line from any acquired company CEO is that the company can do so much more with resources of the company that acquired it than it could on its own. Just seven months after being acquired, Drone, co-founder Brad Rydzewski says that his company really has benefited greatly from being part of Harness, and today the company announced a significant overhaul of the open source project.

The artist formerly known as Drone is now called ‘Harness CI Community Edition’ and Rydzewski says the Harness CEO and founder Jyoti Bansal kept his word when he said he was 100% committed to continue developing the open source Drone product.

“Over the past seven months since the acquisition, a lot of community work has been around taking advantage of the resources that Harness has been able to afford us as a project — like having access to a designer, having access to professional writers — these are luxuries for most open source projects,” Rydzewski told me.

He says that having access to these additional resources has enabled him to bring a higher level of polish to the project that just wouldn’t have been possible without joining Harness. At the same time, he says the CI team, which has grown from the project’s two co-founders to 15 people, has also been able to build out the professional CI tool as it has become part of the Harness toolset.

Chief among the updates to the community edition is a new sleeker interface that has a much more professional look and feel, according to Rydzewski. In addition, developers can see how projects move along the pipeline in a visualization tool, while benefiting from real-time debugging tools and new governance and security features.

All of this is an embarrassment of riches for Rydzewski, who was used to working on a shoestring budget prior to joining Harness. “Drone came from very humble beginnings as an open source project, but now I think it can hold its own next to any product in the market today, even products that have raised hundreds of millions of dollars,” he said.

#continuous-integration, #developer, #drone-io, #enterprise, #harness, #ma, #open-source, #tc

0

Dropbox to acquire secure document sharing startup DocSend for $165M

Dropbox announced today that it plans to acquire DocSend for $165 million The company helps customers share and track documents by sending a secure link instead of an attachment.

“We’re announcing that we’re acquiring DocSend to help us deliver an even broader set of tools for remote work, and DocSend helps customers securely manage and share their business critical documents, backed by powerful engagement analytics,” Houston told me.

When combined with the electronic signature capability of HelloSign, which Dropbox acquired in 2019, the acquisition gives the company an end-to-end document sharing workflow it had been missing. “Dropbox, DocSend and HelloSign will be able to offer a full suite of self-serve products to help our millions of customers manage the entire critical document workflows and give more control over all aspects of that,” Houston explained.

Houston and DocSend co-founder and CEO Russ Heddleston have known each for other years, and have an established relationship. In fact, Heddleston worked for Dropbox as a summer in intern in 2010. He even ran the idea for the company by Houston prior to launching in 2013, who gave it his seal of approval, and the two companies have been partners for some time.

“We’ve just been following the thread of external sending, which has just kind of evolved and opened up into all these different workflows. And it’s just really interesting that by just being laser focused on that we’ve been able to create a really differentiated product that users love a ton,” Heddleston said.

Those workflows include creative, sales, client services or startups using DocSend to deliver proposals or pitch decks and track engagement. In fact, among the earliest use cases for the company was helping startups track engagement with their pitch decks at VC firms.

The company raised a modest amount of the money along the way, just $15.3 million, according to Crunchbase, but Heddleston says that he wanted to build a company that was self-sufficient and raising more VC dollars was never a priority or necessity. “We had [VCs] chase us to give us more money all the time, and what we would tell our employees is that we don’t keep count based on money raised or headcount. It’s just about building a great company,” he said.

That builder’s attitude was one of the things that attracted Houston to the company. “We’re big believers in the model of product growth and capital efficiency, and building really intuitive products that are viral, and that’s a lot of what what attracted us to DocSend,” Houston said. While DocSend has 17,000 customers, Houston says the acquisition gives the company the opportunity to get in front of a much larger customer base as part of Dropbox.

It’s worth noting that Box offers a similar secure document sharing capability enabling users to share a link instead of using an attachment. It recently bought e-signature startup SignRequest for $55 million with an eye toward building more complex document workflows similar to what Dropbox now has with HelloSign and DocSend. PandaDoc is another competitor in this space.

Both Dropbox and SendDoc participated in the TechCrunch Disrupt Battlefield with Houston debuting Dropbox in 2008 at the TechCrunch 50, the original name of the event. Meanwhile, DocSend participated in 2014 at TechCrunch Disrupt in New York City.

DocSend’s approximately 50 employees will be joining Dropbox when the deal closes, which should happen soon, subject to standard regulatory oversight.

#cloud, #docsend, #drew-houston, #dropbox, #enterprise, #exit, #fundings-exits, #ma, #mergers-and-acquisitions, #saas, #secure-file-sharing, #startups, #tc

0

McAfee sells enterprise biz to Symphony Technology Group for $4B

Security firm McAfee announced this morning that will be selling its enterprise business to a consortium led by the private equity firm Symphony Technology Group for $4 billion.

It should pair well with RSA, another enterprise-focused security company the private equity firm purchased last February for $2 billion.

McAfee President and Chief Executive Officer, Peter Leav says that his company has decided to direct the firm’s resources to the consumer side of the business. “This transaction will allow McAfee to singularly focus on our consumer business and to accelerate our strategy to be a leader in personal security for consumers,” he said in a statement.

The company has been some moves in the last year, returning to the public markets after a decade as a private company. In January, the company reportedly laid off a couple of hundred employees and shut down its software development center in Tel Aviv.

Although Symphony did not point directly to the RSA acquisition, the two investments create a large combined legacy security business for the firm, both of which have strong brand recognition, but might have lost some of their edge to more modern competitors in the marketplace.

Looking at McAfee’s latest earning’s report, Q42020, which the company reported on February 24, 2021, the consumer business grew at a much brisker rate than the enterprise side of the house. The former was up 23% YoY, while the latter grew at a far slower 5% rate.

As for the entire year, the company reported $2.9 billion in total FY2020 revenue, up 10% YoY. That broke down to $1.6 billion in consumer net revenue up 20% YoY, and $1.3 billion in enterprise net revenue, an increase of just 1% for the full year.

The company has a complex history, starting life in the 1980s selling firewall software. It eventually went public before being purchased by Intel for $7.7 billion in 2010 and going private again. In 2014, the company changed names to Intel Security before Intel sold a majority stake it to TPG in 2017 for $4.2 billion and changed the name back to McAfee.

The transaction is expected to close by the end of this year subject to regulatory oversight.

#enterprise, #ma, #mcafee, #mergers-and-acquisitions, #private-equity, #security, #symphony-technology-group, #tc

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Making sense of the $6.5B Okta-Auth0 deal

When Okta announced that it was acquiring Auth0 yesterday for $6.5 billion, the deal raised eyebrows. After all, it’s a substantial amount of money for one identity and access management (IAM) company to pay to buy another, similar entity. But the deal ultimately brings together two companies that come at identity from different sides of the market — and as such could be the beginning of a beautiful identity friendship.

The deal ultimately brings together two companies that come at identity from different sides of the market — and as such could be the beginning of a beautiful identity friendship.

On a simple level, Okta delivers identity and access management (IAM) to companies who use the service to provide single-sign-on access for employees to a variety of cloud services — think Gmail, Salesforce, Slack and Workday.

Meanwhile, Auth0 is a developer tool providing coders with easy API access to single-sign-on functionality. With just a couple of lines of code, the developer can deliver IAM tooling without having to build it themselves. It’s a similar value proposition to what Twilio offers for communications or Stripe for payments.

The thing about IAM is that it’s not exciting, but it is essential. That could explain why such a large number of dollars are exchanging hands. As Auth0 co-founder and CEO Eugenio Pace told TechCrunch’s Zack Whittacker in 2019, “Nobody cares about authentication, but everybody needs it.”

Putting the two companies together generates a fairly comprehensive approach to IAM covering back end to front end. We’re going to look at why this deal matters from an identity market perspective, and if it was worth the substantial price Okta paid to get Auth0.

Halt! Who goes there?

When you think about identity and access management, it’s about making sure you are who you say you are, and that you have the right to enter and access a set of applications. That’s why it’s a key part of any company’s security strategy.

Gartner found that IAM was a $12 billion business last year with projected growth to over $13.5 billion in 2021. To give you a sense of where Okta and Auth0 fit, Okta just closed FY2021 with over $800 million in revenue. Meanwhile Auth0 is projected to close this year with $200 million in annual recurring revenue.

Identity and access management market numbers from Gartner.

Image Credits: Gartner

Among the top players in this market according to Gartner’s November 2020 Magic Quadrant market analysis are Ping Identity, Microsoft and Okta in that order. Meanwhile Gartner listed Auth0 as a key challenger in their market grid.

Michael Kelly, a Gartner analyst, told TechCrunch that Okta and Auth0 are both gaining something from the deal.

“For Okta, while they have a very good product, they have marketing muscle and adoption rates that are not available to smaller vendors like Auth0. When having [IAM] conversations with clients, Okta is almost always on the short list. Auth0 will immediately benefit from being associated with the larger Okta brand, and Okta will likewise now have credibility in the deals that involve a heavy developer focused buyer,” Kelly told me.

Okta co-founder and CEO Todd McKinnon said he was enthusiastic about the deal precisely because of the complementary nature of the two companies’ approaches to identity. “How a developer interacts with the service, and the flexibility they need is different from how the CIO wants to work with [identity]. So by giving customers this choice and support, it’s really compelling,” McKinnon explained.

#auth0, #ec-cloud-and-enterprise-infrastructure, #enterprise, #ma, #mergers-and-acquisitions, #okta, #saas, #security, #tc, #todd-mckinnon

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Okta acquires cloud identity startup Auth0 for $6.5B

As Okta announced earnings today after the bell, it revealed that it’s buying cloud identity startup Auth0 for a hefty $6.5 billion. The company had a valuation of $1.92 billion when it raised $120 million led by Salesforce Ventures last July.

With Auth0, Okta gets a cloud identity company that helps developers embed identity management into applications, adding an entirely new dimension to its identity platform. “Today, we’re taking a significant step forward — I’d go so far to call it a “leap” — to enhance the Okta Identity Cloud. We announced our agreement to join forces with Auth0, a leading identity platform for developers,” Okta co-founder and CEO Todd McKinnon wrote in a blog post announcing the deal.

Auth0 users can breathe a sigh of relief in that McKinnon writes that the company will operate as an independent unit inside of Okta as they look for paths to integration in the coming months.

Eugenio Pace, co-founder and CEO Auth0 sees his company together with Okta as powerful combination in the identity management space, and he’s not just hyping the deal when he says that. “Together, we can offer our customers workforce and customer identity solutions with exceptional speed, simplicity, security, reliability and scalability. By joining forces, we will accelerate our customers’ innovation and ability to meet the needs and demands of consumers, businesses and employees everywhere,” Pace said in a statement.

Okta had a pretty good quarter too while it was at it, announcing $234.7 million in revenue up 40% year over year, but Wall Street appears to be unhappy with the deal with the stock price down 6.9% in after hours trading.

Auth0 was founded in 2013 and raised over $300 million along the way. In addition to Salesforce Ventures, other investors included Sapphire Ventures, Bessemer Venture Partners and Meritech Capital Partners.

This is a breaking story. More to come.

#auth0, #cloud, #enterprise, #identity-management, #ma, #mergers-and-acquisitions, #okta, #saas, #security, #tc, #todd-mckinnon

0

Toro acquires robotic tractor/snow blower maker, Left Hand Robotics

Toro this week announced its intentions to acquire Left Hand Robotics. The Colorado-based startup (not to be confused with Righthand Robotics) is a natural fit for the lawn mowing giant, as the producer of the RT-1000, an autonomous system capable of mowing large lawns and clearing snow from sidewalks.

Toro is best known for its personal and professional mowers and various other landscaping machines. The company also has some experience in the robotic category, beating various competitors to the punch by a decade or two with its iMow, but those efforts don’t appear to have made a major dent in its overall offerings.

Left Hand’s primary offering targets professionals. It’s already a category for its new parent company, though it’s easy to see how it might scale down as personal mowers gain in popularity. The RT-1000 is a fully autonomous system designed for a variety of weather conditions that could make a more compact version an appealing option for users — assuming the companies are able to shrink the cost accordingly.

The acquisition comes as companies like John Deere are strategizing their own approach toward robotics, while devoted companies like iRobot have begun to explore the space. Although iRobot’s own mower was delayed due to COVID-19, the Roomba maker believes it has cracked what’s proven to be a difficult market for many.

Left Hand has raised $8.9 million to date. Details of the transaction have not been disclosed.

#lawn, #left-hand-robotics, #ma, #mergers-and-acquisitions, #robotics, #toro

0

Zynga acquires Echtra, maker of Torchlight 3, to double down on RPG games

Games company Zynga has been on an acquisition tear the last several years to beef up its activity in particular in mobile and casual-puzzle games, spending over $3 billion to pick up a range of startups across Europe (specifically Turkey and Finland) in the process. Today, however, it’s taking a turn towards more immersive, highly graphic cross-platform experiences. The company has announced that it is acquiring San Francisco’s Echtra Games, the role-playing game publisher behind Torchlight III, which is available on Steam, XBox One, PS4 and Nintendo Switch.

The team will be working on releasing a new title in partnership with Zynga’s NaturalMotion studio, the company said. No other details on that were released for now.

Financial terms of the deal were not disclosed. It’s also not clear who backed Echtra, if anyone.

But Echtra is in some ways a classic example of a gaming startup built out of a burning idea, rather than cold, calculated moneymaking — perhaps the best kind of company you can have.

Max Schaefer, the co-founder and CEO, had previously been at Runic Games, the developer of the original Torchlight series, as well as Diablo and others. Runic was shuttered by its owner, Perfect World, and so in 2016, Shaefer went on to form a new company, Echtra, with some of his Runic colleagues and others in the industry because he saw more life left in the franchise.

The plan will be to bring on Echtra’s team and expertise both to continue building the franchise and to more generally help Zynga build out more of a footprint in cross-platform games, and also gaming technology, in particular around tools built on Unreal Engine, the platform of choice at the moment for RPG and other immersive applications.

“Max and his team at Echtra Games are responsible for some of the most legendary game properties ever created, and they are experts in the action RPG genre and cross-platform development.  I’m excited to welcome the Echtra Games team into the Zynga family,” said Frank Gibeau, Chief Executive Officer of Zynga, in a statement. “This acquisition will be instrumental in growing our iconic licenses and brands from mobile to PCs and consoles, while helping to further expand Zynga’s total addressable market.”

“Echtra Games is delighted to be joining the Zynga family,” added Max Schaefer. “We share Zynga’s vision that cross-platform play is an essential part of the future of RPGs and interactive entertainment and are eager to apply our vast experience and talents to this effort.”

Gaming has been one of the bright spots in the last year — no surprise, since people are spending so much more time indoors and at home because of the pandemic. Zynga, as a consequence of that, has also been on a roll in recent times, with its fourth quarter earnings, released last month, beating analyst expectations. Its revenues of $616 million are the highest ever quarterly bookings posted by the company. Acquisitions are major part of its strategy these days, the company said at the time.

Going for more immersive RPG titles outside of mobile is an ambitious and potentially more expensive undertaking and is a very notable swerve away from the company’s acquisitions in recent years, which have included a majority stake in Turkey’s Rollic for $228 million, Peak for $2.1 billion, 80% of Small Giant Games for $718 million; and Gram Games for $299 million.

#games, #gaming, #ma, #zynga

0

EBay and Adevinta to sell UK sites Gumtree, Motors.co.uk and Shpock to get their $9.2B deal past regulators

After inking a $9.2 billion deal to merge their classifieds businesses last year, eBay and Norway’s Adevinta have announced a deal to sell off three popular web properties in the UK to get the deal cleared by local regulators, the Competition Markets Authority. The companies plan to sell off Adevina-owned Shpock, and eBay-owned Gumtree and Motors.co.uk — three UK sites that let individuals sell used goods and find/offer services — with the transactions expected to be completed in time for eBay and Adevinta to complete their bigger deal in Q2 2021, pending final regulatory approvals.

“EBay and Adevinta remain excited about the proposed combination of Adevinta and eBay Classifieds Group and now target closing the transaction in Q2 2021, subject to final ratification of the remedies execution plan by the CMA and receipt of outstanding regulatory approval in Austria,” the companies said in a joint statement.

The companies have not yet said whether they plan to sell them in a single package or to independent buyers, but a spokesperson for Adevinta said that it’s likely that the CMA will give another update in 2-4 weeks. She declined to give a price range for the properties.

But in the statement from the companies, eBay said that Gumtree and Motors, which form its UK classifieds business, account for less than 10% of its consolidated revenues ($10.3 billion last year); and Adevinta said that Shpock revenues make up less than 1% of its consolidated revenues (which were about $80 million in the last 12 months). Adevinta is the majority owner of Norwegian publisher Schibsted, among other businesses.

The CMA provisionally has said that it would support the deal if the sale of the three properties gets completed.

“The CMA considers that there are reasonable grounds for believing that the undertakings offered by Adevinta and eBay, or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002,” it noted in a brief update (which was dated 2 March, 2020, although I think that was a typo).

The divestment decision comes as a result of the CMA last month announcing that the deal raised competition concerns as is.

“It is important that people have choice when it comes to selling items they no longer require or searching for a bargain online, and that they can enjoy competitive fees and services,” said CMA’s Joel Bamford, Senior Director of Mergers, in a statement. “There is a realistic chance that without this deal Gumtree and Shpock would have been direct competitors to eBay, which is by far the biggest player in this market. This is the latest in a series of merger probes by the CMA involving large digital companies, where we are thoroughly examining deals to ensure that competition is not restricted, and consumers’ interests are protected.”

Interestingly, one of those other deals also involves eBay, indirectly. Another asset that eBay sold off as part of its wider divestment efforts aiming to streamline its business was selling secondary ticket market company Stubhub to Viagogo in a $4 billion deal. That acquisition closed last year, but then the merger was investigated by the CMA, which last month ordered Viagogo to divest the company’s business outside of North America. It’s a crushing blow when you consider that events have fallen off a virtual cliff (literally and figuratively).

Turning back to Gumtree, Shpock and Motors.co.uk, even if those sites are a relatively small part of eBay and Adevinta’s wider business revenue-wise, collectively they form a very popular option for people looking to buy or sell used goods or hire people for service jobs in the UK. I’ve been a regular user of both in my time, to sell and buy items, and to advertise for/discover several excellent au pairs. Coincidentally, people also use them to resell tickets.

It’s notable that the CMA didn’t consider Facebook, or any others, big enough yet to be seen as viable competitors in that market. It will be worth watching to see how and if that changes though. With deals like last week’s $191 million fundraise for Wallapop, and Facebook’s persistent Marketplace efforts, it is clear that there is still business to be found in classified listings, both as a standalone enterprise, or as something that creates stickiness for users to hang around for other services and advertising alongside them.

#adevinta, #ebay, #ecommerce, #europe, #fundings-exits, #gumtree, #ma, #schibsted, #shpock

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Atlassian is acquiring Chartio to bring data visualization to the platform

The Atlassian platform is chock full of data about how a company operates and communicates. Atlassian launched a machine learning layer, which relies on data on the platform with the addition of Atlassian Smarts last fall. Today the company announced it was acquiring Chartio to add a new data analysis and visualization component to the Atlassian family of products. The companies did not share a purchase price.

The company plans to incorporate Chartio technology across the platform, starting with Jira. Before being acquired, Chartio has generated its share of data, reporting that 280,000 users have created 10.5 million charts for 540,000 dashboards pulled from over 100,000 data sources.

Atlassian sees Chartio as way to bring that data visualization component to the platform and really take advantage of the data locked inside its products. “Atlassian products are home to a treasure trove of data, and our goal is to unleash the power of this data so our customers can go beyond out-of-the-box reports and truly customize analytics to meet the needs of their organization,” Zoe Ghani, head of product experience at platform at Atlassian wrote in a blog post announcing the deal.

Chartio co-founder and CEO Dave Fowler wrote in a blog post on his company website that the two companies started discussing a deal late last year, which culminated in today’s announcement. As is often the case in these deals, he is arguing that his company will be better off as part of large organization like Atlassian with its vast resources than it would have been by remaining stand-alone.

“While we’ve been proudly independent for years, the opportunity to team up our technology with Atlassian’s platform and massive reach was incredibly compelling. Their product-led go to market, customer focus and educational marketing have always been aspirational for us,” Fowler wrote.

As for Chartio customers, unfortunately according to a notice on the company website, the product is going to be going away next year, but customers will have plenty of time to export the data to another tool. The notice includes a link to instructions on how to do this.

Chartio was founded in 2010, and participated in the Y Combinator Summer 2010 cohort. It raised a modest $8.03 million along the way, according to Pitchbook data.

#atlassian, #chartio, #data-visualization, #enterprise, #exit, #fundings-exits, #ma, #mergers-and-acquisitions, #startups, #tc

0

Why F5 spent $2.2B on 3 companies to focus on cloud native applications

It’s essential for older companies to recognize changes in the marketplace or face the brutal reality of being left in the dust. F5 is an old-school company that launched back in the 90s, yet has been able to transform a number of times in its history to avoid major disruption. Over the last two years, the company has continued that process of redefining itself, this time using a trio of acquisitions — NGINX, Shape Security and Volterra — totaling $2.2 billion to push in a new direction.

While F5 has been associated with applications management for some time, it recognized that the way companies developed and managed applications was changing in a big way with the shift to Kubernetes, microservices and containerization. At the same time, applications have been increasingly moving to the edge, closer to the user. The company understood that it needed to up its game in these areas if it was going to keep up with customers.

Taken separately, it would be easy to miss that there was a game plan behind the three acquisitions, but together they show a company with a clear opinion of where they want to go next. We spoke to F5 president and CEO François Locoh-Donou to learn why he bought these companies and to figure out the method in his company’s acquisition spree madness.

Looking back, looking forward

F5, which was founded in 1996, has found itself at a number of crossroads in its long history, times where it needed to reassess its position in the market. A few years ago it found itself at one such juncture. The company had successfully navigated the shift from physical appliance to virtual, and from data center to cloud. But it also saw the shift to cloud native on the horizon and it knew it had to be there to survive and thrive long term.

“We moved from just keeping applications performing to actually keeping them performing and secure. Over the years, we have become an application delivery and security company. And that’s really how F5 grew over the last 15 years,” said Locoh-Donou.

Today the company has over 18,000 customers centered in enterprise verticals like financial services, healthcare, government, technology and telecom. He says that the focus of the company has always been on applications and how to deliver and secure them, but as they looked ahead, they wanted to be able to do that in a modern context, and that’s where the acquisitions came into play.

As F5 saw it, applications were becoming central to their customers’ success and their IT departments were expending too many resources connecting applications to the cloud and keeping them secure. So part of the goal for these three acquisitions was to bring a level of automation to this whole process of managing modern applications.

“Our view is you fast forward five or 10 years, we are going to move to a world where applications will become adaptive, which essentially means that we are going to bring automation to the security and delivery and performance of applications, so that a lot of that stuff gets done in a more native and automated way,” Locoh-Donou said.

As part of this shift, the company saw customers increasingly using microservices architecture in their applications. This means instead of delivering a large monolithic application, developers were delivering them in smaller pieces inside containers, making it easier to manage, deploy and update.

At the same time, it saw companies needing a new way to secure these applications as they shifted from data center to cloud to the edge. And finally, that shift to the edge would require a new way to manage applications.

#cloud, #cloud-native, #ec-cloud-and-enterprise-infrastructure, #enterprise, #f5, #kubernetes, #ma, #nginx, #shape-security, #tc, #volterra

0

Canva acquires background removal specialists Kaleido

Kaleido, makers of a drag-and-drop background removal service for images and video, have been acquired by up and coming digital design platform Canva. While the price and terms are not disclosed, it is speculated that this young company may have fetched nearly nine figures.

It’s the right product at the right time, seemingly. In 2019, the Vienna-based Kaleido made remove.bg, a quick, simple, free, and good-enough background removal tool for images. It became a hit among the many people who need to quickly do that kind of work but don’t want to fiddle around in Photoshop.

Then late last year they took the wraps off Unscreen, which did the same thing for video — a similar task conceptually, but far more demanding to actually engineer and deploy. The simplicity and effectiveness of the tool practically begged to be acquired and integrated into a larger framework by the likes of Adobe, but Canva seems to have beaten the others to the punch.

Animated image showing a stack of books on a table in a room, but the table and room get deleted.

Image Credits: Unscreen

The acquisition was announced at the same time as another by Canva: product mockup generator Smartmockups, suggesting a major product expansion by the growing design company.

We completely bootstrapped Kaleido with no investors involved from day one,” said co-founder and CEO of Kaleido, Benjamin Groessing, in a press release. “It has just been two founders and an incredible team. We’ve been profitable from the start — so this acquisition wasn’t essential for our existence. It just made sense on so many levels.”

The company declined to provide any further details on the acquisition beyond that the brand and name are expected to survive — at least Unscreen, which makes perfect sense as a product name even under another company.

German outlets Die Presse and Der Brutkasten cited sources putting the purchase “reiht sich dahinter ein” or in the same rank as the largest Austrian exits (the largest of which was Runtastic at €220M), though still in the two-digit millions — which suggests a price approaching $100M.

The team at kaleido celebrating their acquisition - each member has been digitally added.

Image Credits: Kaleido

Whatever the exact amount, it seems to have made the team very happy. And don’t worry – they put that image together using their own product for each person.

#artificial-intelligence, #exit, #fundings-exits, #kaleido, #ma, #startups, #unscreen

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Rokk3r acquires AdMobilize and Matrix Labs for $19.5M

Miami-based AdMobilize and its spin-off, Matrix Labs, announced this morning that they are being acquired for $19.5 million. The buyer is Rokk3r, a Miami-based holding company that invests in creating, acquiring and integrating companies.

AdMobilize quantifies digital advertising in the physical world, so marketers can better reach their target audiences.

“If you’re walking on 5th Avenue and you pass by a bus shelter that has a digital screen, AdMobilize analyzes [peoples’] age, gender, emotion and even how long the person was looking at the ad. We created a platform that mimics the click-through rate. So we kind of created Google Analytics for the outside world,” said Rodolfo Saccoman, CEO and founder of AdMobilize.

The company, which has raised $13 million since its launch in 2012, also has offices in Saccoman’s native Brazil, as well as Colombia and London. 

AdMobilize operates as a SaaS with an average monthly subscription fee of $50 per screen or billboard. 

“Our tech is 95% accurate, and it’s based on undeniable computer vision data,” Saccoman said. If a digital ad screen doesn’t have a camera built-in, AdMobilize can provide one. But Saccoman made it very clear that the company doesn’t do any facial recognition and really is only interested in the data in a broader sense.

Matrix Labs, on the other hand, is a hardware company with products that look similar to Raspberry Pi, but with a lot more oomph.

“Our Matrix Labs development boards give the Raspberry Pi superpowers. It transforms the Pi to be AI-ready for computer vision, sensor fusion, voice recognition and more. It democratizes AI at the edge by removing barriers to entry, shortening the learning curve, and increases adaptability,” Saccoman said.

Rodolfo Saccoman Image Credits: Saccoman

The company offers two boards. One is called the Matrix Creator and sells for $99, while the other is the Matrix Voice which goes for $75.

“It [Matrix boards] enables people to not spend millions of dollars making a piece of hardware,” Saccoman said. In fact, it levels the playing field for developers, he added. “It allows them to create solutions in the physical world with inexpensive edge AI hardware.”

Rokk3r was an early investor in AdMobilize, along with Azoic Ventures, Fuel Venture Capital, VAS Ventures and Axel Springer.

“Rokk3r has always believed in the potential of artificial intelligence, Internet of Things, and computer vision, hence it seeded and helped build AdMobilize. Where we stand today with what AdMobilize/Matrix Labs has achieved, it is clear that the technology created is critical to the future of AI/IOT/CV, and with Rokk3r’s focus on AI/IOT and IP creation, the fit was clear,” said Nabyl Charania, chairman and CEO of Rokk3r.

Saccoman is a Brazilian-born serial entrepreneur who moved to the U.S. to attend college at Cornell in 1995 and never left. He made his way down to South Florida with his first job out of college, where he was head of Digital Innovation at the ultra-lux Breakers Hotel in Palm Beach. While the AdMobilize/Matrix Labs deal is his first exit, his first “venture” was when he was just 13 years old. It was called the PiPi bag. São Paulo, the financial capital of Brazil, is notorious for awful traffic. It can often take people three hours to get to the airport, and when you’re trying to catch a flight, stopping to use the restroom isn’t usually an option. As the name suggests, the Pipi bag was a handheld portable toilet of sorts for those moments when nature calls.

Years later, in 2007, Saccoman also founded a company with his brother who has a PhD in psychology. It was called MyTherapyJournal.com and was the first online journaling platform with cognitive behavior therapy. 

“It would measure your varying emotions when you answered key questions. For example, people could start to understand what would trigger their anxiety. It had early traces of AI,” Saccoman said. MyTherapyJournal closed in 2012.

Of his various ventures, he said, “My mind was always running to find problems.”

Saccoman will stay on board and lead Rokk3r’s AI and IoT division.

#admobilize, #adtech, #advertising-tech, #ma, #mergers-and-acquisitions, #rokk3r

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Miami edtech startup Nearpod acquired by Renaissance

Nearpod, the Miami-based edtech company, is being acquired by Renaissance Holding Corp., a group that develops education technology. While Nearpod isn’t announcing the news until later this month, the information leaked to Yahoo! Finance yesterday, and a source inside the company confirmed the sale with TechCrunch this morning. The acquisition price, and further details, have yet to be disclosed.

Nearpod offers an edtech platform that K-12 teachers use in the classroom to create interactive slides filled with videos, quizzes, questions and other activities. Students can use any device to participate in the lessons in real-time; there is also a student-paced learning mode. In response to the pandemic, Nearpod now also offers remote learning, too.

It’s been a busy year for Nearpod. The company, which was founded in 2012 by three Argentinian entrepreneurs, is now led by Pep Carrera who was brought on in early 2020 just as the pandemic gained traction. The company has raised more than $30 million in venture capital according to Crunchbase, and we last profiled the startup in 2017 when it raised its Series B.

In a previous interview, Carrera told me “My first day on the job, I’m driving to the office [near Dania Beach] and talking to the management team on the phone, and we decided that we needed to close the office due to the pandemic. This was in March.” Nearpod currently employees about 250 employees, most of which are at their Dania Beach HQ.

While the pandemic has posed many questions around remote work, under the leadership of Carrera, Nearpod has seen explosive growth in 2020. While Nearpod was primarily designed to be used in the classroom, the team was able to turn it into a remote-learning platform, too, making it a forerunner in K-12 distance education.

Nearpod is used in all 50 states, and in more than 1,800 school districts. In 2020 alone, the company grew by about 50% with more than 1 million teachers using the product, and 2-3 million students online per day. In a December 2020 interview, Carrera told me that all the money being generated right now is being put back into the company to propel its growth, which has been organic. Nearpod spends very little ad dollars on marketing. The real marketing, he said, is by word of mouth.

A teacher uses Nearpod to deliver digital curriculum to students’ mobile devices, during class. Photo via Nearpod.

Prior to joining Nearpod, Carrera was president of ProQuest Books, where he led a team focused on providing innovative software that made the acquisition, management, and delivery of books to academic learners, researchers, and librarians efficient and impactful. And even prior to ProQuest, as president and COO, Carrera grew VitalSource Technologies, the digital learning division of Ingram Conte Group, serving more than 20 million learners per year globally, by 10x over his six years there.

M&A activity in edtech has accelerated as VCs have splurged funding into the space. As my colleague Natasha Mascarenhas wrote recently, edtech M&A is leading to mass consolidation in the space. Nearpod joins a number of other edtech companies like Symbolab and Woot Math that have exited in recent months.

#edtech, #education, #ma, #miami, #nearpod

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SailPoint is buying Saas management startup Intello

SailPoint, an identity management company that went public in 2017, announced it was going to be acquiring Intello today, an early stage SaaS management startup. The two companies did not share the purchase price.

SailPoint believes that by helping its customers locate all of the SaaS tools being used inside a company, it can help IT make the company safer. Part of the problem is that it’s so easy for employees to deploy SaaS tools without IT’s knowledge, and Intello gives them more visibility and control.

In fact, the term ‘shadow IT’ developed over the last decade to describe this ability to deploy software outside of the purview of IT pros. With a tool like Intello, they can now find all of the SaaS tools and point the employees to sanctioned ones, while shutting down services the security pros might not want folks using.

Grady Summers, EVP of product at SailPoint says that this problem has become even more pronounced during the pandemic as many companies have gone remote, making it even more challenging for IT to understand what SaaS tools employees might be using.

“This has led to a sharp rise in ungoverned SaaS sprawl and unprotected data that is being stored and shared within these apps. With little to no visibility into what shadow access exists within their organization, IT teams are further challenged to protect from the cyber risks that have increased over the past year,” Summers explained in a statement. He believes that with Intello in the fold, it will help root out that unsanctioned usage and make companies safer, while also helping them understand their SaaS spend better.

Intello has always seen itself as a way to increase security and compliance and has partnered in the past with other identity management tools like Okta and Onelogin. The company was founded in 2017 and raised $5.8 million according to Crunchbase data. That included a $2.5 million extended seed in May 2019.

Yesterday, another SaaS management tool, Torii, announced a $10 million Series A. Other players in the SaaS management space include BetterCloud and Blissfully, among others.

#cloud, #enterprise, #exit, #fundings-exits, #identity-management, #intello, #ma, #mergers-and-acquisitions, #saas, #saas-management-tools, #sailpoint, #security, #startups, #tc

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Logging startups are suddenly hot as CrowdStrike nabs Humio for $400M

A couple of weeks ago SentinelOne announced it was acquiring high-speed logging platform Scalyr for $155 million. Just this morning CrowdStrike struck next, announcing it was buying unlimited logging tool Humio for $400 million.

In Humio, CrowdStrike gets a company that will provide it with the ability to collect unlimited logging information. Most companies have to pick and choose what to log and how long to keep it, but with Humio, they don’t have to make these choices with customers processing multiple terabytes of data every single day.

Humio CEO Geeta Schmidt writing in a company blog post announcing the deal described her company in similar terms to Scalyr, a data lake for log information:

“Humio had become the data lake for these enterprises enabling searches for longer periods of time and from more data sources allowing them to understand their entire environment, prepare for the unknown, proactively prevent issues, recover quickly from incidents, and get to the root cause,” she wrote.

That means with Humio in the fold, CrowdStrike can use this massive amount of data to help deal with threats and attacks in real time as they are happening, rather than reacting to them and trying to figure out what happened later, a point by the way that SentinelOne also made when it purchased Scalyr.

“The combination of real-time analytics and smart filtering built into CrowdStrike’s proprietary Threat Graph and Humio’s blazing-fast log management and index-free data ingestion dramatically accelerates our [eXtended Detection and Response (XDR)] capabilities beyond anything the market has seen to date,” CrowdStrike CEO and co-founder George Kurtz said in a statement.

While two acquisitions don’t necessarily make a trend, it’s clear that security platform players are suddenly seeing the value of being able to process the large amounts of information found in logs, and they are willing to put up some cash to get that capability. It will be interesting to see if any other security companies react with a similar move in the coming months.

Humio was founded in 2016 and raised just over $31 million, according to Pitchbook Data. Its most recent funding round came in March 2020, a $20 million Series B led by Dell Technologies Capital. It would appear to be a decent exit for the startup.

CrowdStrike was founded in 2011 and raised over $480 million along the way before going public in 2019. The deal is expected to close in the first quarter, and is subject to typical regulatory oversight.

#crowdstrike, #data-lakes, #enterprise, #exit, #fundings-exits, #humio, #logging-tools, #ma, #mergers-and-acquisitions, #security, #startups, #tc

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These 3 enterprise deals show there’s plenty of action in smaller acquisitions

Since the start of the year, I’ve covered nine M&A deals already, the largest being Citrix buying Wrike for $2.25 billion. But not every deal involves a huge price tag. Today we are going to look at three smaller deals that show there is plenty of activity at the lower-end of the acquisition spectrum.

As companies look for ways to enhance their offerings, and bring in some talent at the same time, smaller acquisitions can provide a way to fill in the product road map without having to build everything in-house.

This gives acquiring companies additional functionality for a modest amount of cash. In smaller deals, we often don’t even get the dollar amount, although in one case today we did. If the deal isn’t large enough to have a material financial impact on a publicly traded company, they don’t have to share the price.

Let’s have a look at three such deals that came through in recent days.

Tenable buys Alsid

For starters, Tenable, a network security company that went public in 2018, bought French Active Directory security startup Alsid for $98 million. Active Directory, Microsoft’s popular user management tool, is also a target of hackers. If they can get a user’s credentials, it’s an easy way to get on the network and Alsid is designed to prevent that.

Security companies tend to enhance the breadth of their offerings over time and Alsid gives Tenable another tool and broader coverage across their security platform. “We view the acquisition of Alsid as a natural extension into user access and permissioning. Once completed, this acquisition will be a strategic complement to our Cyber Exposure vision to help organizations understand and reduce cyber risk across the entire attack surface,” according to the investor FAQ on this acquisition.

Emmanuel Gras, CEO and co-founder, Alsid says he started the company to prevent this kind of attack. “We started Alsid to help organizations solve one of the biggest security challenges, an unprotected Active Directory, which is one of the most common ways for threat actors to move laterally across enterprise systems,” Gras said in a statement.

Alsid is based in Paris and was founded in 2014. It raised a modest amount, approximately $15,000, according to Crunchbase data.

Copper acquires Sherlock

Copper, a CRM tool built on top of the Google Workspace, announced it has purchased Sherlock, a customer experience platform. They did not share the purchase price.

The pandemic pushed many shoppers online and providing a more customized experience by understanding more about your customer can contribute to and drive more engagement and sales. With Sherlock, the company is getting a tool that can help Copper users understand their customers better.

“Sherlock is an innovative engagement analytics and scoring platform, and surfaces your prospects’ and customers’ intentions in a way that drives action for sales, account management and customer success professionals,” Copper CEO Dennis Fois wrote in a blog post announcing the deal.

He added, “Relationships are based on engagement, and with Sherlock we are going to create CRM that is focused on action and momentum.”

RapidAPI snags Paw

It’s clear that APIs have changed the way we think about software development, but they have also created a management problem of their own as they proliferate across large organizations. RapidAPI, an API management platform, announced today that it has acquired Paw.

With Paw, RapidAPI adds the ability to design your own APIs, essentially giving customers a one-stop shop for everything related to creating and managing the API environment inside a company. “The acquisition enables RapidAPI to extend its open API platform across the entire API development lifecycle, creating a connected experience for developers from API development to consumption, across multiple clouds and gateways,” the company explained in a statement.

RapidAPI was founded in 2015 and has raised over $67 million, according to Crunchbase data. Its most recent funding came last May, a $25 million round from Andreessen Horowitz, DNS Capital, Green Bay Ventures, M12 (Microsoft’s Venture Fund) and Grove.

Each of these purchases fills an important need for the acquiring company and expands the abilities of the existing platform to offer more functionality to customers without putting out a ton of cash to do it.

#alsid, #copper, #enterprise, #fundings-exits, #ma, #mergers-and-acquisitions, #paw, #rapidapi, #sherlock, #tc, #tenable

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Dating juggernaut Match buys Seoul-based Hyperconnect for $1.73B, its biggest acquisition ever

In a large win for the Korean startup ecosystem, dating powerhouse Match Group announced this afternoon that it would buy social networking company Hyperconnect for a combined cash and stock deal valued at $1.73 billion.

Hyperconnect, which is projected to have $200 million in revenue in 2020 (up 50% from 2019) according to the company, offers two apps — Azar and Hakuna Live — which allow users to connect to each other across language barriers. The two are complementary, with Azar focused on one-to-one video chats and Hakuna Live focused on the online live broadcast market. In their press statement, the companies noted that 75% of Hyperconnect’s revenue originates in Asia.

It’s the largest acquisition to date by Match Group, which also owns the popular dating apps Tinder and Hinge along with many other assorted properties.

One theme of the acquisition and Hyperconnect’s story is technology. The company built what it describes as “the first mobile version” of WebRTC, a now well-developed standard that is designed to offer resilient peer-to-peer connections between users without relying on a company to serve as a middleman server.

For instance, a video chat between two participants would be transmitted directly between the two of them using WebRTC, without the video being broadcast through Hyperconnect’s servers. That’s designed to improve reliability by removing latency while also reducing the cost of bandwidth for the service to Hyperconnect. WebRTC is now a well-deployed open-source standard, with companies such as Google using it in products like Google Meet.

In addition to its innovative work on WebRTC, Hyperconnect built infrastructure to support two users who speak and text in different languages to interact with each other directly through its apps using real-time translation. In a marketing post on Google Cloud, Hyperconnect is a marquee customer of the cloud service’s speech, real-time translation and messaging APIs.

In the companies’ joint press statement, both sides emphasized R&D and engineering as key wins for the deal. That begs the question then what Match Group is looking to build with its massive new purchase? While the group has largely confined itself to dating, live broadcast and other media verticals may well be in its sights once it acquires the technology from Hyperconnect.

The deal is expected to close in 2021Q2.

#asia, #hyperconnect, #korea, #ma, #match-group, #mobile, #tc

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Encrypted data handling startup DataFleets acquired by LiveRamp for over $68M

LiveRamp has acquired DataFleets, a fresh young startup that made it possible to take advantage of large volumes of encrypted data without the risk or fuss of decrypting or transferring it. LiveRamp, an enterprise data connectivity platform itself, paid more than $68M for the company, a huge multiple on DataFleet’s $4.5M seed announced just last fall.

DataFleets saw the increasing need for sensitive data like medical or financial records to be analyzed or used to train machine learning models. Not only are such databases bulky and complex, making transfers difficult, but allowing them to be decrypted and used elsewhere opens the door to errors, abuse, and hacks.

The company’s solution was essentially to have software on both sides of the equation, the data provider (perhaps a hospital or bank) and the client (an analyst or AI developer), and act as a secure go-between. Not for the sensitive data itself, but for the systems of analysis and machine learning models that the client wanted to set loose on the data. This allows the client to perform an automated task on the data, such as harvesting and comparing values or building an ML model, without ever having direct access to it.

Clearly this approach seemed valuable to LiveRamp, which provides a number of data connectivity services to major enterprise customers, household names in fact. They announced in their earnings statement last night that they paid $68M up front for DataFleets, though that price does not reflect the various other incentives and deferred payments that many such deals involve, and in this case seem likely to remain private.

The deal will probably result in the retiring of the DataFleets brand (young as it was), but their various customers will probably make the trip to LiveRamp. The most recent of those is HCA Healthcare, a major national provider that just announced a COVID-19 data sharing consortium that would be using DataFleets’s services. That’s a pretty powerful validation for an approach just commercialized late last year, and a nice catch for LiveRamp to add to its healthcare client collection.

For its part LiveRamp plans to use its augmented services to expand its operations and offerings in Europe, Asia, and Latin America over the coming year. The company has also called for a federal data privacy law, something that hopefully that will be achieved under the new administration.

#datafleets, #enterprise, #exit, #fundings-exits, #liveramp, #ma, #startups

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SentinelOne to acquire high-speed logging startup Scalyr for $155M

SentinelOne, a late-stage security startup that helps customers make sense of security data using AI and machine learning, announced today that it is acquiring Scalyr, the high-speed logging startup for $155 million in stock and cash.

SentinelOne sorts through oodles of data to help customers understand their security posture, and having a tool that enables engineers to iterate rapidly in the data, and get to the root of the problem is going to be extremely valuable for them, CEO and co-founder Tomer Weingarten explained. “We thought Scalyr would be just an amazing fit to our continued vision in how we secure data at scale for every enterprise [customer] out there,” he told me.

He said they spent a lot of time shopping for a company that could meet their unique scaling needs and when they came across Scalyr, they saw the potential pretty quickly with a company that has built a real-time data lake. “When we look at the scale of our technology, we obviously scoured the world to find the best data analytics technology out there. We [believe] we found something incredibly special when we found a platform that can ingest data, and make it accessible in real time,” Weingarten explained.

He believes the real time element is a game changer because it enables customers to prevent breaches, rather than just reacting to them. “If you’re thinking about mitigating attacks or reacting to attacks, if you can do that in real time and you can process data in real time, and find the anomalies in real time and then meet them, you’re turning into a system that can actually deflect the attacks and not just see them and react to them,” he explained.

The company sees Scalyr as a product they can integrate into the platform, but also one which will remain a stand-alone. That means existing customers should be able to continue using Scalyr as before, while benefiting from having a larger company contributing to its R&D.

While SentinelOne is not a public company, it is a pretty substantial private one, having raised over $695 million, according to Crunchbase data. The company’s most recent funding round came last November, a $267 million investment with a $3.1 billion valuation.

As for Scalyr it was launched in 2011 by Steve Newman, who first built a word processor called Writely and sold it to Google in 2006. It was actually the basis for what became Google Docs. Newman stuck around and started building the infrastructure to scale Google Docs, and he used that experience and knowledge to build Scalyr. The startup raised $27 million along the way, according to Crunchbase data including a $20 million Series A investment in 2017.

The deal will close this quarter, and when it does Scalyr’s 45 employees will be joining SentinelOne.

#artificial-intelligence, #enterprise, #exit, #fundings-exits, #logging-tools, #ma, #mergers-and-acquisitions, #scalyr, #security, #sentinelone, #startups, #tc

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DoorDash acquires salad-making robotics startup, Chowbotics

DoorDash is expanding its robotic footprint into the kitchen. The delivery service is set to acquire Chowbotics, a Bay Area-based robotics best known for its salad-making robot, Sally. TechCrunch has confirmed the acquisition, which was first noted by The Wall Street Journal.

“We have long admired the work that Chowbotics has done to increase access to fresh meals, with its groundbreaking robotics product and vision,” DoorDash co-founder Stanley Tang said in a comment offered to TechCrunch. “At DoorDash, we are always working to innovate and continue improving how we support our merchant partners and their success — and are excited to leverage this technology to do so in new ways. With the Chowbotics team on board, we can explore new use cases and customers, providing another service to help our merchants grow.”

Founded in 2014, Chowbotics has raised around $21 million to date, including an $11 million round back in 2018. The company’s vending machine-style salad bar robot was already well-positioned for the pandemic, removing a human element from the food preparation process — not to mention the fact that salad bars and buffets tend to be open air affairs. In October, the startup added a contactless feature to the robot, letting users order ahead of time, via app.

“Joining the DoorDash team unlocks new possibilities for Chowbotics and the technology that this team has built over the past seven years,” CEO Rick Wilmer said in a statement. “As the leader in food delivery and on-demand logistics, DoorDash has the unparalleled reach and expertise to help us grow and deploy our technology more broadly, so together, we can make fresh, nutritious food easy for more people.”

It’s not entirely clear how the company’s technology will fit into the delivery service’s current offering, though DoorDash notes it will “improve consumer access to fresh and safe meals, and enhance our robust merchant offerings and logistics platform.” It also remains to be seen whether Chowbotics will continue to operate as its own entity within the broader DoorDash. We’ve reached out for more insight.

“At DoorDash, we strive to become a merchant’s first call when they want to grow their business,” Tang said. “What excites us most about Chowbotics is that the team has developed a remarkable tool for helping merchants grow. Bringing Chowbotics’ technology into the DoorDash platform gives us a new opportunity to help merchants expand their current menu offerings and reach new customers in new markets — which is a fundamental part of our merchant-first approach to empowering local economies.”

DoorDash has been working with robotics companies for a number of years now. Perhaps the most prominent example is a partnership with Starship Technologies to explore food delivery robots. Though that technology has seen a fair number of roadblocks among local officials not eager to turn their sidewalks over to robots. The delivery company likens Chowbotics’ kiosk-style technology to its work with ghost kitchens, effectively serving as a conduit to help expand food options at local merchants – be it in store or through delivery. The former will likely be of more interest once the current pandemic is in the rear view.

Details of the acquisition have not been disclosed.

#chowbotics, #doordash, #hardware, #ma, #robotics

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