Apptio Continues Acquisition Spree With Deal to Buy Cloudability

Apptio, a Bellevue, WA-based company that helps corporate technology leaders manage their IT spending, announced Thursday it has agreed to acquire Cloudability, a Portland, OR-based developer of software for tracking cloud-computing expenditures.

Apptio’s news release announcing the deal did not disclose any of its financial terms.

The deal, which comes on the heels of other acquisitions Apptio has made in recent years, would create a combined company able to offer customers a “mature and powerful platform for cloud migration [and] modernization, optimization, and agility,” Mat Ellis, founder and CEO of Cloudability, says in the release.

The transaction is subject to closing conditions, and is expected to close during the second quarter of Apptio’s 2019 fiscal year, the company says.

Both businesses are riding the wave of more corporations transitioning to cloud computing, and IT departments playing a larger role in companies’ strategies and financial decision-making.

Apptio, which has been in business for a dozen years and sells its software through subscriptions, would expand its cloud analytics offerings by adding Cloudability’s product line and team to Apptio’s.

Launched in 2011, Cloudability says it has built a roster of 250-plus enterprise clients worldwide. Its customers include Atlassian (NASDAQ: TEAM), BP (NYSE: BP), Gannett (NYSE: GCI), and Sony (NYSE: SNE), according to the release.

Cloudability’s Financial Operations Platform allows users to see how much they’re spending on services such as Amazon (NASDAQ: AMZN) Web Services, Google (NASDAQ: GOOGL) Cloud, and Microsoft (NASDAQ: MSFT) Azure.

Using Cloudability’s software, an organization can break down its use of different cloud services and determine, for example, which of the organization’s software applications cost the most money to host remotely.

If the acquisition is approved, Apptio and Cloudability say they would work together to integrate their technologies for predictive forecasting. They also plan to connect their software products to collaboration and project-planning tools such as Slack and Jira, a product sold by Atlassian.

Apptio raised $96 million in a 2016 initial public offering, but in November agreed to be taken private by investment firm Vista Equity Partners as part of a $1.94 billion acquisition.

Apptio has been an active acquirer in recent years. In October, it bought FittedCloud, a Boston-based developer of cloud optimization software, for an undisclosed price. And in February 2018, Apptio acquired Digital Fuel, a Los Angeles-based provider of IT and business management software, for $42.5 million in a combined cash-and-stock deal.

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