Keynote Systems Signs Deal to Acquire DeviceAnywhere

Keynote Systems (News - Alert), the global leader in Internet and mobile cloud monitoring, recently announced that it has acquired Mobile Complete (News - Alert), Inc, doing business as DeviceAnywhere, a leading enterprise-class cloud-based platform for testing and monitoring mobile websites and apps.

The deal is worth approximately $60.0 million in cash plus a potential earn-out of up to $30.0 million if certain calendar year 2011 and 2012 bookings, revenue and EBITDA thresholds are achieved. After the acquisition, DeviceAnywhere will operate as a standalone subsidiary continue, and be led by its co-founders Faraz A. Syed, CEO, and David J. Marsyla, CTO.

All of DeviceAnywhere's (News - Alert) 119 employees are expected to join Keynote and move into Keynote's San Mateo headquarters in 2012. Keynote expects the acquisition to be non-dilutive to non-GAAP EPS in fiscal year 2012 and accretive to non-GAAP EPS in fiscal year 2013. 

Umang Gupta, Chairman and CEO of Keynote, said, “Combining DeviceAnywhere's leading testing and quality assurance (QA) cloud-based solutions with our strong mobile monitoring business firmly establishes Keynote as a leader in the mobile testing and monitoring markets. The resulting increased product breadth and scale meaningfully enhance our competitive position. In addition, the acquisition will expand our addressable market into the immediately adjacent enterprise mobile testing and quality assurance space, which we project could enable us to grow this into a $100 million business.”

Gupta added, “We welcome DeviceAnywhere's talented employees to Keynote. We are especially pleased that industry pioneers Faraz and David will continue to provide expertise, vision and leadership by heading up our new Keynote-DeviceAnywhere division.”

Syed, said, “DeviceAnywhere's team is excited to be joining Keynote at a time when the enterprise mobile industry is beginning to accelerate. Our complementary offerings provide a full gamut of options for our existing and prospective customers, and we look forward to working with Keynote to increase our combined share in this dynamic market.”

In other news, Alcatel-Lucent (News - Alert), a major telecom infrastructure equipment provider, and DeviceAnywhere recently partnered to help developers and mobile operators launch new services more quickly.

Rahul Arora is a TMCnet contributor. He has worked as an editor and freelance writer for several reputed organizations in India. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell