Progress, which helps enterprises deliver, optimise and secure applications and networks across any cloud or hybrid environment, said on Friday the acquisition of Kemp is expected to close in October 2021, and expects to fund the purchase price with cash on hand.
With the acquisition, Progress says it will extend its portfolio of products in DevOps, Application Development, Data Connectivity and Digital Experience, by adding Application Experience Management (AX).
“Now more than ever, businesses recognise that their applications must always be available and highly performant,” said Yogesh Gupta, CEO, 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.”
Kemp Loadmaster and Flowmon Network Visibility products monitor application performance, and distribute and balance traffic and workloads across servers, in the cloud or on premise, ensuring high performance and availability. They do this by leveraging machine learning to identify anomalies and alert IT professionals before end-users are impacted.
Gupta says these capabilities complement Progress offerings, such as WhatsUp Gold, a market leader in easy-to-use network management, and combined, they will offer the “best application experience solution in the market”.
“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 added
Gupta says 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, 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 organisations are impressive and will surely lead to long-term success for all.”