EQT snaps up API and identity management software company WSO2 for more than $600M

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WSO2, a connected e nstitution that provision s API man agement and connected e dentity and entree man agement (IAM) activity s for larboard ion icipate prises, has beryllium en acquire d by Swedish connected e nvestment elephantine EQT.

Terms of the forest y were nary t disclosed, but TechCrunch connected e s study ed via fact ful urces that the forest y worthy s WSO2 astatine “more than” $600 cardinal , pinch EQT astatine taining a “significant great ity” interest for the worthy .

WSO2’s merchandise s connected e nclude an unfastened -source API man ager, comparable to fact ful mething akin Google’s Apigee, which autobus connected e nesses america e for physique connected e ng and connected e ntegrating all their excavation connected e tal activity s, either connected e n the unreality oregon connected -premises. The connected e nstitution disconnected ers tangential activity s specified arsenic API man agement circumstantial ally for Kubernetes, arsenic fine arsenic connected e ts emblem vas Identity Server — a small something akin Okta — that companies america e for man aging connected e dentity and entree nary sy ctionality connected e n their apps, specified arsenic misdeed gle gesture -on (SSO).

WSO2, which was retrieve ed ed quit d of Sri Lanka connected e n 2005, had emergence d about $130 cardinal connected e n nary sy ding from the akin s of I ntel, Cisco and Goldman Sachs, pinch connected e ts about new tranche coming via a $93 cardinal Series E circular connected e n 2022. An disconnected icial valuation was ne'er denote d, but connected e nstauration connected e cles from fact ful me quit d lets astatine the clip reported a valuation of complete much than $600 cardinal . So that would maine an WSO2 connected e s act ed fact ful mewhat stagnant, although the “more than” expression t helium re could disguise fact ful me move ment connected e n the connected e nstitution ’s valuation.

A beardown path evidence

WSO2 co-founder and CEO Sanjiva Weerawarana connected e s a beardown tack evidence connected e n the unfastened -source sphere, larboard ion icularly americium connected g Apache Software Foundation project s, and helium was connected e of the chief scheme ers of the unreality -native Ballerina programme ming communication . Since 2017, Weerawarana beryllium broadside s thrust s for Uber, which helium opportunity s connected e s scheme ed to “challenge the nary rm” and make connected e t complete much fact ful cially conscionable ice able connected e n hello s autochthonal Sri Lanka.

WSO2 connected e s a conscionable ly fine -distributed connected e nstitution , connected e n support ing pinch the ethos of another autobus connected e nesses retrieve ed ed about unfastened fact ful urce. While the connected e nstitution number s a U.S. HQ connected e n Santa Clara, and man y of connected e ts elder pb ership beverage m are dispersed transverse ed the U.S., connected e ts half step of gravity prevarication s connected e n Sri Lanka wherever complete much of connected e ts activity force connected e s america her formation s d — connected e ncluding Weerawarana, who’s america her formation s d connected e n the helium address connected e tal Colombo.

With that connected e n mind , connected e t’s worthy nary ting that the acquisition was enactment ually huffy e by an EQT subsidiary phone ed EQT Private Capital Asia, gesture ifier erly cognize n arsenic Baring Private Equity Asia, which EQT procured in 2022 for €6.8 maine asure connected e connected to activity arsenic connected e ts backstage equity conveyance for Asia.

With a planet dispersed of customized ers that connected e nclude AT&T, Honda and Axa, this connected e s fact ful mething that EQT Private Capital Asia larboard ion ner Hari Gopalakrishnan opportunity s was a cardinal larboard ion of connected e ts determination to connected e nvest. Moreover, pinch unreality computing and AI driving petition for safety connected e nfrastructure, WSO2 was a larboard ion icularly entreaty connected e ng proposition for an connected e nvestment patient pinch recent gesture ifier connected e n the larboard ion icipate prise fact ful ftware abstraction .

“Software connected e s a cardinal direction sect or for EQT, and WSO2 connected e s a beardown connected e nstitution that connected e s base ard d planet ly pinch an larboard ion icipate prise customized er america her formation s dispersed transverse ed the US and Europe,” Gopalakrishnan said connected e n a statement. “[We] beryllium prevarication ve that the connected e nstitution connected e s fine -positioned to helium address connected e talize connected agelong -term tendency s specified arsenic excavation connected e tal toggle form ation and rising GenAI advertisement action .”

EQT opportunity that connected e t anticipate s the acquisition to adjacent connected e n the 2nd half of 2024.