Virtual Instruments, which was acquired six months ago by Load Dynamix, has acquired another San Jose-based startup. This time it is buying Xangati, a developer of hybrid cloud and virtualization performance management. Terms of the deal were not disclosed but it is reportedly an all-stock transaction.
Xangati has raised about $22 million since it was founded in 2006, doing its last round of funding three years ago. Its investors include HighBar Partners, which also invested about $20 million in Virtual Instruments when the earlier M&A deal was done. HighBar was also a major investor in Load Dynamix and the Menlo Park firm appears to be the driver in both of this year’s acquisitions.
“The combination of Virtual Instruments, Load DynamiX and Xangati has now created a company with the scale, expertise and capabilities to lead the market for next-generation performance and availability solutions,” said HighBar’s managing partner John Kim said in the announcement of the Xangati deal.
Microsoft Chairman John Thompson left Virtual Instruments when the Load Dynamix deal was done but the merged companies kept the name.
Philippe Vincent, the former CEO of Load Dynamix who now leads Virtual Instruments, said the new acquisition creates the industry’s first application-centric infrastructure performance management platform that is real-time, cross-domain, and helps IT teams to ensure application performance and availability.
The company said its revenue has grown more than expected when the first acquisition happened in April and it has actually become profitable.
Xangati had about 30 employees. CEO Sundi Sungaresh is not joining Virtual Instruments. Founder and Chief Technology Officer Jagan Jagannathan is becoming Virtual Instruments’ chief innovation officer.
The combined companies will have about 230 employees.
Virtual Instruments is moving into new headquarters after the deal on Bering Drive, near its current headquarters on Zanker Road.
Cromwell Schubarth is TechFlash Editor at the Silicon Valley Business Journal.
- 17 Nov, 2016
- Posted by Anik Bose
- 0 Comments