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Citrix is acquiring Wrike from Vista for $2.25B

Citrix announced today that it plans to acquire Wrike, a SaaS project management platform, from Vista Equity Partners for $2.25 billion. Vista bought the company just two years ago.

Citrix, which is best known for its digital workspaces, sees this as a good match, especially at a time where employees have been forced to work from home because of the pandemic. By combining the two companies, it produces a powerful combination, one that didn’t escape Citrix CEO and president David Henshall

“Together, Citrix and Wrike will deliver the solutions needed to power a cloud-delivered digital workspace experience that enables teams to securely access the resources and tools they need to collaborate and get work done in the most efficient and effective way possible across any channel, device or location,” Henshall said in a statement.

Andrew Filev, founder and CEO at Wrike, who has managed the company through these multiple changes and remains at the helm, believes his company has landed in a good spot with the Citrix purchase.

“First, as part of the Citrix family we will be able to scale our product and accelerate our roadmap to deliver capabilities that will help our customers get more from their Wrike investment. We have always listened to our customers and have built our product based on their feedback — now we will be able to do more of that, faster.,” Filev wrote in a company blog post announcing the deal, stating a typical argument from CEOs of acquired companies.

The startup reports $140 million ARR, growing at 30% annually, so that comes out to approximately 16x its present-day revenue, which is the price companies are generally paying for acquisitions these days. However, as Wrike expects to reach $180 million to $190 million in ARR this year, the company’s sale price could look like a bargain in a few years’ time if the projections come to pass.

The price was not revealed in the 2018 sale, but it surely feels like a big win for Vista. Consider that Wrike has previously raised just $26 million.

GitLab raises $195M in secondary funding on $6B valuation

GitLab has confirmed with TechCrunch that it raised a $195 million secondary round on a $6 billion valuation. CNBC broke the story earlier today.

The company’s impressive valuation comes after its most recent 2019 Series E in which it raised $268 million on a 2.75 billion valuation, an increase of $3.25 billion in under 18 months. Company co-founder and CEO Sid Sijbrandij believes the increase is due to his company’s progress adding functionality to the platform.

“We believe the increase in valuation over the past year reflects the progress of our complete DevOps platform towards realizing a greater share of the growing, multi-billion dollar software development market,” he told TechCrunch.

While the startup has raised over $434 million, this round involved buying employee stock options, a move that allows the company’s workers to cash in some of their equity prior to going public. CNBC reported that the firms buying the stock included Alta Park, HMI Capital, OMERS Growth Equity, TCV and Verition.

The next logical step would be appear to be IPO, something the company has never shied away from. In fact, it actually at one point included the proposed date of November 18, 2020 as a target IPO date on the company wiki. While they didn’t quite make that goal, Sijbrandij still sees the company going public at some point. He’s just not being so specific as in the past, suggesting that the company has plenty of runway left from the last funding round and can go public when the timing is right.

“We continue to believe that being a public company is an integral part of realizing our mission. As a public company, GitLab would benefit from enhanced brand awareness, access to capital, shareholder liquidity, autonomy and transparency,” he said.

He added, “That said, we want to maximize the outcome by selecting an opportune time. Our most recent capital raise was in 2019 and contributed to an already healthy balance sheet. A strong balance sheet and business model, enables us to select a period that works best for realizing our long term goals.”

GitLab has not only published IPO goals on its Wiki, but it’s entire company philosophy, goals and OKRs for everyone to see. Sijbrandij told TechCrunch’s Alex Wilhelm at a TechCrunch Disrupt panel in September, he believes that transparency helps attract and keep employees. It doesn’t hurt that the company was and remains a fully remote organization, even pre-COVID.

“We started [this level of] transparency to connect with the wider community around GitLab, but it turned out to be super beneficial for attracting great talent as well,” Sijbrandij told Wilhelm in September.

The company, which launched in 2014, offers a DevOps platform to help move applications through the programming lifecycle.

Twilio CEO Jeff Lawson says wisdom lies with your developers

Twilio CEO Jeff Lawson knows a thing or two about unleashing developers. His company has garnered a market cap of almost $60 billion by creating a set of tools to make it easy for programmers to insert a whole host of communications functionality into an application with a couple of lines of code. Given that background, perhaps it shouldn’t come as a surprise that Lawson has written a book called “Ask Your Developer,” which hit the stores this week.

Lawson’s basic philosophy is that if you can build it, you should.

Lawson’s basic philosophy in the book is that if you can build it, you should. In every company, there is build versus buy calculus that goes into every software decision. Lawson believes deeply that there is incredible power in building yourself instead of purchasing something off the shelf. By using components like the ones from his company, and many others delivering specialized types functionality via API, you can build what your customers need instead of just buying what the vendors are giving you.

While Lawson recognizes this isn’t always possible, he says that by asking your developers, you can begin to learn when it makes sense to build and when it doesn’t. These discussions should stem from customer problems and companies should seek digital solutions with the input of the developer group.

Building great customer experiences

Lawson posits that you can build a better customer experience because you understand your customers so much more  acutely than a generic vendor ever could. “Basically, what you see happening across nearly every industry is that the companies that are able to listen to their customers and hear what the customers need and then build really great digital products and experiences — well, they tend to win the hearts, minds and wallets of their customers,” Lawson told me in an interview about the book this week.

Billboard for book Ask your Developer by Jeff Lawson, CEO of Twilio

Image Credits: Twilio (image has been cropped)

He says that this has caused a shift in how companies perceive IT departments. They have gone from cost centers that provision laptops and buy HR software to something more valuable, helping produce digital products that have a direct impact on the business’s bottom line.

He uses banking as an example in the book. It used to be you judged a bank by a set of criteria like how nice the lobby was, if the tellers were friendly and if they gave your kid a free lollipop. Today, that’s all changed and it’s all about the quality of the mobile app.

“Nowadays your bank is a mobile app and you like your bank if the software is fast, if it is bug free and if they regularly update it with new features and functionality that makes your life better [ … ]. And that same transformation has been happening in nearly every industry and so when you think about it, you can’t buy differentiation if every bank just bought the same mobile app from some vendor and just off the shelf deployed it,” he said.