Keynote to Acquire DeviceAnywhere, a Leader in Mobile Testing and Quality Assurance
Keynote has an article about load testing.
"Keynote(R) Systems KEYN +1.62% , the global leader in Internet and mobile cloud monitoring, signed a definitive agreement to acquire privately-held Mobile Complete, Inc, doing business as DeviceAnywhere, a leading enterprise-class cloud-based platform for testing and monitoring mobile websites and apps, for approximately $60.0 million in cash plus a potential earn-out.
Umang Gupta, Chairman and CEO of Keynote, said: "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. 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 award winning 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.
Also based in San Mateo, DeviceAnywhere will continue to be led by its co-founders Faraz A. Syed, CEO, and David J. Marsyla, CTO, and will operate as a standalone subsidiary, similar to Keynote-SIGOS, after the transaction.
Gupta added, "We welcome DeviceAnywhere's talented employees to Keynote. We are especially pleased that industry pioneers Faraz and David will continue to provide expertise, vision and leadership by heading up our new Keynote-DeviceAnywhere division."
Syed, said, "DeviceAnywhere's team is excited to be joining Keynote at a time when the enterprise mobile industry is beginning to accelerate. Our complementary offerings provide a full gamut of options for our existing and prospective customers, and we look forward to working with Keynote to increase our combined share in this dynamic market."
DeviceAnywhere logically extends Keynote's enterprise mobile product portfolio into the immediately adjacent 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.
Terms of the Agreement
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. DeviceAnywhere's revenues have grown over 15% on a compounded annual basis over the last three years to approximately $20 million in revenue for the trailing twelve months ended September 30, 2011. Keynote expects the acquisition to be non-dilutive to non-GAAP EPS in fiscal year 2012 and accretive to non-GAAP EPS in fiscal year 2013. Substantially all of DeviceAnywhere's 119 employees are expected to join Keynote and move into Keynote's San Mateo headquarters in 2012. Management will conduct a call today to discuss the transaction and expects to provide additional detail on the fiscal 2011 fourth quarter and year-end conference call scheduled for November 3rd, 2011.
Keynote will host a conference call and simultaneous webcast at 9:00 am ET/ 6:00 am PT today, Monday, October 10, 2011. To access the call in the U.S. please dial (800) 588-4973 and for international callers dial (847) 230-5643 . Callers may provide the following confirmation number 30918646 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining. The webcast can be accessed at www.keynote.com and available for replay for 90 days. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the telephone replay in the U.S., please dial (888) 843-7419 , and for international callers dial (630) 652-3042 and enter access code 30918646#."
Keynote Systems, Inc. is headquartered in San Mateo, California and can be reached at www.keynote.com or by phone in the U.S. at 1-800-KEYNOTE ."