Progress Announces Plans to Acquire MarkLogic
Application development firm Progress has announced it has entered into a definitive agreement to acquire data management provider MarkLogic. The companies expect that upon the closing of this transaction, MarkLogic will provide a unified, enterprise-grade semantic data platform for deriving value from complex data.
MarkLogic is known for its proprietary, multi-model NoSQL database, as well as robust semantic metadata management and AI capabilities. “Adding MarkLogic also expands Progress beyond structured, SQL data with a powerful NoSQL database, informed search and semantic AI,” explained Progress CEO Yogesh Gupta in a blog post. “This elevates data agility and data insights and will provide the necessary functionality for our large enterprise customers seeking to natively manipulate, store and manage non-relational data, such as graphs, triples and other unstructured data.”
Progress says its acquisition of MarkLogic will provide it an opportunity to leverage its highly disciplined operating model and infrastructure to maximize efficiency: “We have embarked on an acquisition-driven Total Growth Strategy in which we intend to acquire infrastructure software businesses with complementary products, recurring revenue and loyal customer bases, all the while retaining a high level of discipline. Ultimately, we are seeking to double the size of our company in five years, providing tremendous opportunities for employees, customers, partners and shareholders alike,” said Gupta.
This deal is expected to add more than $100 million in annual revenue upon closing: “Since embarking on this strategy, we’ve added over $200 million to our topline. When this deal closes, that figure will be north of $300 million, keeping us on pace to execute this strategy,” Gupta noted.
The purchase price of the transaction is estimated to be $355 million, and the deal is expected to close in early 2023, according to a release. Progress also noted its anticipated fourth quarter 2022 annual recurring revenue will be approximately $497 million for a year-over-year growth of 3.5%.
“The key to the success of any business is its ability to tackle complex data challenges through informed decision making. To do this effectively, users must turn data into actionable insights—and that is what MarkLogic delivers,” said Gupta in a statement. “Progress’ digital experience and infrastructure software products along with MarkLogic products will create an unmatched platform, giving customers access to an increasingly more complete offering to drive business success.”
“I’m extremely proud of what our team at MarkLogic has been able to accomplish since the Vector Capital acquisition–from major product releases and customer wins, to the acquisition of Smartlogic,” said Jeffrey Casale, CEO, MarkLogic. “As part of a larger, well-established organization, I’m confident that our team will thrive with new opportunities for professional development and innovation, and our customers will gain access to an expansive product portfolio that will enhance their digital experiences and elevate their infrastructure management capabilities.”