Less than two months after completing the acquisition of one Israeli start.up company, the software update company JFrog Acquires another start.up company. The company today announced the acquisition of Upswift, which has developed technology that allows developers to update and manage connected devices (IoT) remotely. The scope of the deal has not been disclosed, as it is not material to Jaiprog, and is estimated at tens of millions of dollars; At the end of the second quarter, Jaiprog had over $ 615 million in cash, and since then it has completed the acquisition of Vdoo for about $ 300 million, of which about $ 210 million was paid in cash.
Upswift was founded three years ago by Amit Ezer and Eitan Chudnovsky (27), who recognized the IDF’s technology unit and brought with them the company that formed the rest of their team from the army. According to IVC, the company has so far raised only $ 3.5 million from the fund. Vertex. It currently has dozens of paying customers. “We are very excited about the crazy event happening here, joining Jaiprog,” says Ezer. To be smarter and its software more and more complex. “
Jaiprog, which provides solutions that enable continuous software updates, is traded on NASDAQ worth $ 3.5 billion. According to Shlomi Ben.Haim, CEO of Jaiprog and one of its founders, And the software eventually gets to the cloud and data center. After all, your computer is not in the cloud, your smartphone or car is not in the cloud, someone needs to get to the end device. “Car, phone, TV. Together with Jaiprog it connects to the world of the key: writing code, clicking update and billions of devices are updated.“
He said the challenge of connecting IoT to DevOps “is the digital transformation 2.0”, while “a smart device without a software update is a stupid device”.
On Upswift’s platform, he says: “What they built is just amazing. When we saw it, in simple Hebrew, ‘our heads are flying’. They are a talented bunch.“
The Upswift team will remain entirely in Jaiprog and will join “As is” in Jaiprog’s technology team in Israel, with the aim of building product integration.
How is the initial connection between the companies formed?
“Our vision probably connected us to DevOps in the IoT world, and we were looking for a company that was developer.friendly. Surprisingly, we found that an Israeli company developed the most developer.friendly platform. Our product people turned to Upswift, we did proof of concept and it was simple “Amazing. We felt at home with these guys.“
Ezer: “I think at this stage it was clear to both parties that we needed to work together. With the family feeling that Shlomi and the team convey, we felt like one unit.“
Ben.Haim: “It’s nice to see the Israeli economy develop ‘inside the house.‘
You acquired two companies within two months. What’s the next purchase?
“We now need to stop for a bit and prove to the world that we put together the puzzle, that we are a business and not a buying spree. We will make a full integration of the two companies.“
In recent weeks, the share of Jaiprog has fallen by 20% and is traded today at a price lower than the issue price of a year ago. In the past you said you were looking at whether the whole market was going down or just Jaiprog.
“True, Jaiprog has gone down more than the market. I really have no answers, I’m not a stock expert. What I told employees is that today Jaiprog is trading at a 15.20 multiplier on next year’s revenue – there are no more such companies. In the commando unit you can not complain “They ask you to run, and we do not complain that they ask us more. I concentrate on both quarterly performance and three.year planning, we are focused on the vision and estimate that the market will still learn. We have not yet said the last word.“