JFrog is buying Israeli security startup Vdoo for $ 300 million


Israeli software company JFrog (Nasdaq: FROG), which held its IPO on Nasdaq last year, found use for part of the money it raised and announced the acquisition of Israeli startup Vdoo for $ 300 million, of which $ 210 million in cash and $ 90 million million dollars is in JFrog shares, based on the average price of the average price in the past fifteen days.

JFrog, headed by co-founder Shlomi Ben Haim, offers a solution for continuous software updates. Nine months ago, it raised $ 428 million in a $ 4 billion offer. After the rise and fall of the stock price after flotation, it is now trading at nearly $ 50 per share, giving it a market capitalization of nearly $ 4.7 billion. At the end of the first quarter, the company had $ 606 million in cash.

JFrog’s announcement of the acquisition reads: “JFrog has accelerated efforts to provide a leading security offering to support DevOps customers as they respond to market disruptions for continuous software delivery. As part of the JFrog platform, Vdoo will accelerate JFrog’s vision to become a standing company. behind all software updates and create a world of Liquid Software by expanding its DevOps platform offering from end to end, providing holistic security from the development environment all the way to the edges, IoT and devices.

“Many of DevOps’ solutions today lack the appropriate security capabilities that are fully integrated into the software lifecycle. Security tools are different, each with its own data set, creating friction between development and security teams, slowing software update releases – especially when continuous delivery to edges or over a large fleet of devices.As a result, many of these security tools do not deliver on the promises of fast, automated, and secure releases.

“The market requires a holistic process that secures software components to the brink, consolidates security data for effective decision making, saves time and resources, and blesses a complete delivery system with the highest integrity for security-certified releases – from any source to any endpoint.”

Vdoo was founded in 2017 by Netanel (Nati) Davidi, its CEO, Uri Alter (president) and Asaf Karas (CTO). According to the IVC, the company employs over 90 people, mostly in Israel. It raised $ 70 million in two fundraising rounds, the second of which took place this year. Investors include 83North, Dell Technology Capital, GGV Capital, Qumra Capital, NTT Doccomo and Verizon.

“We are excited that Vdoo has joined the JFrog family,” said Ben Haim of JFrog. “It is clear to us that a shared vision of changing the way software is created, published and updated to the end will be our compass as we offer the market a binary-focused solution to insure their organization’s software assets.”

For Vdoo, Davidi said: “This proposed acquisition is a great fit for both of our companies. We share a vision around DevOps and security: if any DevOps company isn’t also a security company, it solves only a small part of the puzzle.”

Simultaneously with the announcement of the acquisition, JFrog also reiterated its guidelines. In the second quarter, the company expects revenue of $ 47.6 to $ 48.6 million, with non-GAAP operating income of $ 0.5 to $ 1.5 million and non-GAAP earnings per share of $ 0.00 to $ 0. , 01 dollars, assuming that about 104 million weighted average diluted shares in circulation remain. For 2021, revenue of $ 198 to $ 204 million is expected, with non-GAAP operating income between $ 5 and $ 7 million and growth of approximately 3% on average weighted diluted shares.

In the first quarter, JFrog’s revenue was $ 45.1 million, up 37% from the same quarter, and recorded a non-GAAP net loss of $ 0.09 per share,

Depending on the closure of the proposed takeover, JFrog predicts that its consolidated operating costs will increase by approximately $ 9-10 million by the end of 2021.

Posted by Globes, business news in Israel – en.globes.co.il – June 29, 2021

© Copyright Globes Itonut (1983) Ltd. 2021

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