Progress (NASDAQ, PRGS), a global supplier of software to develop, deploy and manage high-impact applications, has acquired Kemp – a provider of virtual load balancing technology. By integrating Application Experience Management, Progress will expand its product line in DevOps, Application Development, Data Connectivity, and Digital Experience (AX).
Kemp Loadmaster and Flowmon Network Visibility solutions monitor application performance, and provide high performance and availability to distribute and balance traffic, and workloads over servers, in clouds or in sites. This is achieved by using machinery to discover abnormalities and inform IT experts before they are affected by end users. These features complement Progress solutions including the network management solution WhatsUp Gold. In conjunction, they would provide the finest answer for application performance in the industry.
Kemp is going to purchase progress in cash at $258 million. The transaction is scheduled to conclude in October 2021, provided that regulatory clearances and other usual closure requirements are obtained. Progress expects funds on hand to finance the purchase price.
“Now more than ever, businesses recognize that their applications must always be available and highly performant,” said Yogesh Gupta, CEO of Progress. “The Kemp products address this exact need and complement our portfolio of best-in-class products to develop, deploy and manage high-impact applications.”
Adding Scale and Cash Flow
“The acquisition of Kemp also furthers our total growth strategy and will enable us to add scale and cash flow, creating significant shareholder value,” added Mr. Gupta.
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.
“We are extremely proud of what we’ve been able to achieve as a business,” said Ray Downes, CEO at Kemp. “As part of Progress, I am confident Kemp will thrive in the next chapter of its journey. 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 organizations are impressive and will surely lead to long-term success for all.”
Lincoln International served as the exclusive financial advisor to Kemp on this transaction. Wilmer Cutler Pickering Hale and Dorr LLP served as Progress’ legal counsel and Lowenstein Sandler LLP served as Kemp’s legal counsel with respect to the transaction.
