Another shoe has dropped in the continuing story of TPG Capital‘s foray into DevOps. The company formed by the merger of XebiaLabs and CollabNet VersionOne is now Digital.ai. Additionally, the company has acquired Arxan, a leader in application protection.
I had a chance to catch up with Digital.ai’s CEO Ashok Reddy and Arxan COO Mark Lorion, who will be Digital.ai’s COO of Platform going forward. The video of our discussion which is also available on TechStrong.TV, appears below.
What They Said
Reddy made it very clear that Digital.ai is not content with simply adding this AppSec company to the mix. It is actively involved in due diligence operations on several other acquisitions. Reddy and the TPG team feel that the current COVID-19 situation affords those with cash to pick up some bargains. That may have been the case with Arxan, which was owned by private equity firm TA Associates, which acquired Arxan in 2013 for $132 million. TA may have decided it was time to get off the merry-go-round, given the unsettled state of things right now.
In any event, TA’s loss is Digital.ai’s gain. Arxan adds some much-needed security muscle and a blue-chip bank customer list. But, of course, the real play here is building out the end-to-end DevOps company that will compete with GitLab, GitHub, CloudBees, JFrog and others. We detailed this market in an article when the original merger was announced.
My take is that indeed Digital.ai is not a complete company just yet. It may not even be done in the DevSecOps space, as Arxan is not your typical DevSecOps technology. It may have been more of an opportunistic acquisition.
Also, in terms of executive team, Reddy has been quietly assembling a team made up of some of the best people he worked with at previous stints at IBM, CA/Broadcom and the executives from the acquired companies.
Stay tuned for more on Digital.ai’s continued evolution in the months to come.