Progress announced that it has entered into a definitive agreement to acquire privately held Kemp, an always-on application experience company that aims to help enterprises deliver, optimise and secure applications and networks across any cloud or hybrid environment.
This acquisition is designed for Progress to extend its portfolio of products in DevOps, application development, data connectivity and digital experience, by adding application experience management (AX).
According to Yogesh Gupta, CEO of Progress, businesses recognise that their applications must always be available and highly performant, now more than ever.
“The Kemp products address this exact need and complement our portfolio of best-in-class products to develop, deploy and manage high-impact applications,” Gupta added.
Kemp Loadmaster and Flowmon Network Visibility products are designed to monitor application performance, and distribute and balance traffic and workloads across servers, in the cloud or on premise, ensuring high performance and availability.
By leveraging machine learning to identify anomalies, the products aim to contact IT professionals before end-users are impacted.
“The acquisition of Kemp also furthers our total growth strategy and will enable us to add scale and cash flow, creating significant shareholder value,” Gupta said.
Kemp meets Progress’ key acquisition criteria of adding solid levels of recurring revenue, complementary technology and loyal customers, and will provide an opportunity for Progress to leverage its larger platform for improved efficiency.
Progress is set to acquire Kemp for $258 million in cash, expecting to fund the purchase price with cash on hand. The transaction is expected to be accretive to both non-GAAP earnings per share and cash flow, beginning in the fiscal fourth quarter of 2021.
The acquisition is expected to close in October 2021, subject to obtaining regulatory approvals and satisfaction of other customary closing conditions.
According to Ray Downes, CEO of Kemp, the company extremely proud of what it has been able to achieve as a business.
"Not only will the combined product portfolio provide great benefit to our customers and partners, but the cultural alignment and customer-first focus demonstrated by both organisations are impressive and will surely lead to long-term success for al,” Downes said.
“As part of Progress, I am confident Kemp will thrive in the next chapter of its journey.”
Nastasha is a Journalist at Momentum Media, she reports extensively across veterans issues, cyber security and geopolitics in the Indo-Pacific. Previously, she was a Content Producer at Verizon Media, a Digital Producer for Yahoo! 7 and Channel 7, a Digital Journalist at Sky News Australia, as well as a Website Manager and Digital Producer at SBS Australia. She started her career in media as a Video Producer and Digital News Presenter at News Corp Australia.