Application delivery controller (ADC) and load balancer company Kemp today was purchased by private equity firm Mill Point Capital. Terms of the deal were not disclosed.
Kemp CEO Ray Downes told SDxCentral that this acquisition will “fuel and accelerate our next phase of revenue growth and help us expand our addressable market through a combination of organic growth and strategic initiatives.” This growth includes serving a more global customer base as well as innovating its existing products.
Downes, and the rest of the Kemp’s management team, will continue to lead the company. John Becker, the current chairman of Kemp will also remain in his position, but in partnership with Mill Point going forward.
Downes said he doesn’t anticipate any major changes in the company’s personnel or location. “The management team is excited about [Mill Point’s] input to our ongoing development efforts and future growth potential around the application experience, or AX, market,” he said.
Rather than being acquired by a technology firm that would merge Kemp’s technology, the private equity firm’s acquisition enables the platform to scale, which appeals to Downes as it keeps the company on its current track.
“Right now, Kemp is taking application delivery to the next level for businesses who are either all-in on cloud-hosted applications, starting to move their workloads to the cloud, or even just considering a cloud migration of their apps,” he said. “Application experience is at the heart of how these businesses thrive.”
The ADC firm earlier this year took direct action against legacy providers such as F5 Networks, Nginx, and HAproxy with updates to its software. It added automation and predictive analytics to better address the end-to-end lifecycle for application delivery. The software can run along these legacy deployments and provide visibility to identify the difference between its ADC and legacy providers, and aid the transition.
F5 has also been making moves in this space as it bought virtual load balancing vendor Nginx for $670 million in early March.
Kemp was founded in 2000 and has raised $26 million in capital across three funding rounds. It is headquartered in New York City (as is Mill Point) but also has regional hubs in Limerick, Ireland; Munich, Germany; Singapore; and Sau Paulo, Brazil. Alongside its ADC software it also has a monitoring and management portal, and virtual and hardware appliances for application delivery.
Mill Point has previously acquired a variety of companies including industrial packaging firms. Within business services and software, it has software companies that sell to governments, telecom, and insurance marketing. Kemp is its first ABC and load balancing company.