Progress announces the acquisition of Kemp and the addition of an application
Progress continues to implement its global growth strategy with an acquisition that meets its financial criteria, has complementary products and a loyal customer base.
BEDFORD, Mass., Sept. 23, 2021 (GLOBE NEWSWIRE) – Progress (NASDAQ: PRGS), the leading provider of products to develop, deploy and manage high-impact applications, today announced that it has entered into a definitive agreement to acquire the privately-held Kemp, the ever-active application experience company that helps businesses deliver, optimize, and secure applications and networks in any cloud or hybrid environment. With this acquisition, Progress will expand its portfolio of market-leading products in DevOps, application development, data connectivity and digital experience, adding Application Experience Management (AX).
âToday more than ever, companies recognize that their applications must always be available and high performing,â said Yogesh Gupta, CEO of Progress. âKemp products meet exactly that need and complement our portfolio of industry-leading products for developing, deploying and managing high impact applications. “
Kemp Loadmaster and Flowmon Network Visibility products monitor application performance, distribute and balance traffic and workloads between servers, in the cloud or on-premises, ensuring high performance and availability. They do this by leveraging machine learning to identify anomalies and alert IT professionals before end users are affected. These capabilities complement Progress offerings, such as WhatsUp Gold, an industry leader in easy-to-use networking. Together, they will deliver the best application experience solution on the market.
âThe acquisition of Kemp also strengthens our overall growth strategy and will allow us to increase scale and cash flow, creating significant shareholder value,â added Mr. Gupta.
Kemp meets Progress’s key acquisition criteria of adding solid levels of recurring revenue, complementary technology and loyal customers and will provide Progress with the opportunity to leverage its larger platform for improved efficiency.
âWe are extremely proud of what we have been able to achieve as a company,â said Ray Downes, CEO of Kemp. âAs part of Progress, I have no doubts that Kemp will thrive in the next chapter of his journey. Not only will the combined product portfolio offer great benefits to our customers and partners, but the foremost cultural alignment and customer focus demonstrated by both organizations is impressive and will surely lead to long term success for all.
Progress will acquire Kemp for $ 258 million in cash. The acquisition is expected to be completed in October 2021, subject to obtaining regulatory approvals and meeting other customary closing conditions. Progress expects to fund the purchase price with cash. The transaction is expected to generate earnings per share and non-GAAP cash flow, starting in fiscal fourth quarter 2021.
Lincoln International acted as Kemp’s exclusive financial advisor in this transaction. Wilmer Cutler Pickering Hale and Dorr LLP acted as legal advisers to Progress and Lowenstein Sandler LLP acted as legal advisors to Kemp with respect to the transaction.
Kemp delivers the lifelong application experience that businesses and service providers need to be successful. Kemp has redefined load balancing and application delivery with more streamlined deployments, more flexible licensing, and best-in-class technical support. Kemp is the world’s most popular virtual load balancer with over 100,000 deployments in 138 countries. Take control of your AX on Kemp.ax.
Progress (NASDAQ: PRGS) provides the best products for developing, deploying and managing high impact business applications. Our comprehensive product stack is designed to make technology teams more productive, and we have a deep commitment to the developer community, both open source and commercial. With Progress, organizations can accelerate the creation and delivery of mission-critical business applications, automate the process by which applications are configured, deployed and scaled, and make critical data and content more accessible and secure, leading competitive differentiation and business success. More than 1,700 independent software vendors, more than 100,000 corporate customers and a community of three million developers trust Progress to power their applications. Learn more about Progress at www.progress.com or at + 1-800-477-6473.
Note regarding forward-looking statements
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements with words such as “believe”, “may”, “may”, “would”, “may”, “should”, “expect”, “intend to” “,” plan “,” target “,” anticipate “and” continue “, the negative of these words, other terms with similar meaning or the use of future dates.
Risks, uncertainties and other important factors that could cause actual results to differ from those expressed or implied in forward-looking statements include: other business partners or government entities; other commercial effects, including the effects of industrial, economic or political conditions beyond the control of Progress or Kemp; transaction costs; real or contingent liabilities; uncertainties as to the achievement of anticipated synergies; and uncertainties as to whether Kemp’s business will be successfully integrated with Progress’s business. For more information on the risks and uncertainties associated with Progress’s business, please refer to the documents filed by Progress with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended November 30. 2020. Progress does not undertake to update any forward-looking statements, which speak only as of the date of this press release.
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