Internet and mobile cloud-monitoring company Keynote Systems has announced plans to acquire privately held Mobile Complete Inc. dba DeviceAnywhere, an enterprise-class, cloud-based platform for testing and monitoring mobile websites and apps. The deal is worth approximately $60 million in cash plus a potential earn-out.
“Combining DeviceAnywhere’s leading testing and quality assurance (QA) cloud-based solutions with our strong mobile monitoring business firmly establishes Keynote as a leader in the mobile testing and monitoring markets," said Umang Gupta, chairman and CEO of Keynote. “The resulting increased product breadth and scale meaningfully enhance our competitive position. In addition, the acquisition will expand our addressable market into the immediately adjacent enterprise mobile testing and quality assurance space, which we project, could enable us to grow this into a $100 million business."
DeviceAnywhere provides cloud-based products and services for testing and monitoring the functionality, usability, performance and availability of mobile apps and websites. More than 1,200 organizations rely on the DeviceAnywhere platform to accelerate the entire QA lifecycle to deliver mobile applications, content and services faster, with more confidence about quality of service, while reducing downtime and testing costs.
DeviceAnywhere will continue to be led by co-founders Faraz Syed, CEO, and David Marsyla, CTO, and will operate as a standalone subsidiary after the transaction.
Keynote says the acquisition is a logical extension of its enterprise mobile product portfolio into the mobile testing and QA market. The complementary solutions enable Keynote to address a wider spectrum of the mobile market by now offering new and existing enterprise customers the leading solutions in both mobile performance monitoring and in mobile testing/quality assurance.
The transaction is expected to close in the next two weeks, subject to customary conditions. The purchase price consists of $60.0 million in cash plus a potential cash earn-out of up to $30.0 million if certain calendar year 2011 and 2012 bookings, revenue and EBITDA thresholds are achieved.
Both companies are based in San Mateo, Calif.
