Progress Software to Acquire Toolmaker Telerik for $262.5 Million

Progress Software is acquiring tools provider Telerik to combine the application development strengths of both companies in a deal worth $262.5 million.

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Progress Software announced that it has entered into a definitive agreement to acquire privately held development tools maker Telerik AD for $262.5 million.

The combination of Progress and Telerik will create a comprehensive cloud and on-premises platform offering that enables developers to rapidly create applications driven by data for any device or cloud. The combined offering will enable developers to create highly personalized user experiences, applications and connections to multiple data sources without being limited by cloud or device.

Progress Software officials said Telerik enables its community of 1.4 million developers to build user experiences across cloud, Web, mobile and desktop applications. Telerik's revenue for the last 12 months was over $60 million, with annual bookings growth of over 20 percent, Progress said.

"User experience is defining the way application software is being selected," said Phil Pead, CEO of Progress, in a statement. "Telerik's strength is in helping developers create elegant, custom user interfaces for their cloud, web-based and on-premise applications. Building applications today is truly complex. Developers also must deal with security, scaling, massive amounts of data and the ability to deploy on a large number of different devices. Together, Progress and Telerik can help to solve these issues so that developers can focus on building software that solves business problems."

The combination of Progress and Telerik brings together two complementary companies. More than 4 million users and 47,000 businesses in over 175 countries run applications on the Progress OpenEdge platform and database, and with its Pacific and Modulus platform, Progress offers an integrated cloud platform for developers to rapidly create applications on any cloud or on-premises infrastructure.

For more than over 12 years, Telerik has been at the forefront of enabling developers at 450 Fortune 500 companies to deliver Web, desktop and mobile applications, Progress Software said. Telerik offers a comprehensive suite of UI development and application life cycle management tools, a cloud-based platform, and a Web content management system for creating and managing mobilized, enterprise Websites.

"We are extremely proud of the incredible achievements and momentum our employees, customers and partners have created for Telerik to date," said Vassil Terziev, co-CEO and co-founder of Telerik, in a statement. "The acquisition by Progress will further strengthen our enterprise and cloud offerings, and will enable us to continue innovating and redefining modern application development. We expect this new chapter to dramatically expand our growth and to provide greater opportunities for Telerik and Progress customers, partners and employees."

In a blog post on the acquisition, Terziev added: "By becoming part of Progress, Telerik will have the support and resources to continue delivering on its grand ambitions to change the way people develop applications for the modern world. Telerik will preserve its identity and its brand name."

The acquisition is expected to close in early December, subject to obtaining regulatory consents and satisfaction of other customary closing conditions. Following the completion of the acquisition, the Telerik founders and key management will join Progress.

"Telerik's products and people are a great fit with Progress," Pead said. "Their success in growing their business using a primarily self-service, digital strategy, with a proven ability to draw developers to their website, will accelerate our overall growth strategy. With Telerik, Progress becomes a destination site for the largest developer population on the planet—ABL, .NET, Java, JavaScript, Node.js and mobile—for developers to create captivating applications using their tools or ours, deployed on our platform anywhere."