Atlanta-based Kobiton, a cellular testing platform that permits builders and QA groups to check their apps on actual units, each on their very own desks and thru the corporate’s cloud-based service, at this time introduced that it has acquired Mobile Labs, one other Atlanta-based cellular testing service.
To finance the acquisition of its well-funded competitor, Kobiton raised a $14 million extension to its $5.2 million Sequence A from its present investor BIP Capital and new investor Fulcrum Equity Partners.
As Kobiton CEO Kevin Lee instructed me, we shouldn’t take that because the acquisition value, nevertheless it’s in all probability a good guess that the true value isn’t too far off. The businesses declined to reveal the precise value, although. Cellular Labs, which was based in 2011, had raised about $15 million earlier than the acquisition, according to Crunchbase. The final time it raised exterior funding was in 2014. Kobiton and Cellular Labs don’t share any widespread traders.
It’s fascinating that Kobiton, which launched in 2017 and which can appear to be a smaller participant at first look, was capable of purchase Cellular Labs. Lee argues that one of many explanation why Cellular Labs determined to promote is that whereas his firm has lengthy targeted on utilizing machine studying to assist builders construct the checks for his or her apps — and the open-source Appium testing framework — Cellular Labs had fallen behind on this space.
“They had been somewhat gradual to spend money on [AI] and I feel they realized — and remainder of the market, I feel will notice it — for those who don’t make investments closely and early, you type of get behind the eight ball,” Lee instructed me.
He additionally famous that there are numerous apparent synergies between the 2 firms. Cellular Labs has numerous purchasers within the gaming and monetary companies area, for instance. Lots of these purchasers are comparatively new to cellular, whereas Kobiton’s present buyer base is usually mobile-first.
“They’ve been round for 10 years and [have] numerous companions, numerous stuff exterior the US,” Lee famous. “They’ve primarily have targeted on what I might name massive established enterprises in regulated industries or industries which are actually involved about IP safety — so behind the firewalls — the place they actually succeeded effectively.”
These Cellular Labs prospects, Lee mentioned, had been additionally in search of AI/ML-based testing options and the acquisition will now enable the 2 firms to layers Kobiton’s know-how on high of the Cellular Labs resolution. There might be an improve path for these prospects they usually’ll give you the option to take action at their very own tempo. There’s no plan to sundown Cellular Labs’ present companies in the meanwhile, although a few of Cellular Labs’ particular person manufacturers might change names.
With this acquisition, Kobiton will greater than double the variety of its US-based workers, although that’s partly as a result of an excellent portion of the corporate’s crew is predicated in Vietnam.