Ipswitch’s file transfer products to give Progress a foothold in the SMB segment
Application development specialist Progress is paying $225 million to acquire Ipswitch Networks, best known for its network management and file transfer tools, in a bid to gain access to the small and midsize business (SMB) segment.
The Lowdown: Ipswitch gives Progress access to more than 24,00 customers around the world that use its secure file transfer products — MOVEit and WS_FTP — as well as its network monitoring tools, WhatsUp Gold and iMacros — for application performance.
The Details: The addition of Ipswitch to the Progress portfolio will not just facilitate entry into the SMB segment but also complement Progress’ existing line of software development and content management products. The deal will likely close at the end of April. Progress did not provide any indication of how it will integrate Ipswitch’s management, sales, or channel
The Impact: The acquisition comes as Progress reported that quarterly earnings are down 6 percent over the previous period in 2018. In buying Ipswitch and its existing financial fundamentals, Progress says it’s poised for stronger financial performance in 2019. CEO Yogesh Gupta says M&A is endemic to Progress’ growth strategy. Ipswitch, he added, is the type of company with the scale and cash flow that meet Progress’ technology and fiscal needs.
The Buzz: “Ipswitch has an excellent reputation, top quality products, a thriving customer base and partner ecosystem, and highly skilled and engaged employees,” said Gupta. “We’re excited by the opportunity this acquisition affords both companies and our respective customers, partners, and employees. Progress and Ipswitch have a common legacy of enabling businesses to solve mission-critical challenges with efficient, easy-to-use solutions.”
“We’re extremely proud of the incredible achievements and momentum the Ipswitch team has created to date,” said Michael Grossi, CEO of Ipswitch. “We expect this new chapter with Progress to provide even greater opportunities for our combined customers, partners, and employees.”