US private equity investment firm Thoma Bravo announced on Tuesday that it made a strategic growth investment in Israeli-founded startup Applitools, a leading provider of visual test automation software.
While financial details for the deal were not disclosed in the announcement, Israeli financial daily CTech by Calcalist reported that the US fund will pay $250 million to acquire the AI-based firm.
Applitools co-founders Gil Sever, Adam Carmi, and Moshe Milman will retain a significant ownership position in the company, the statement said.
The news comes just a week after Israeli adtech company ironSource announced it will merge with the US fund’s publicly traded SPAC (special purpose acquisition company) Thoma Bravo Advantage in a deal that will give ironSource an $11.1 billion valuation.
Founded in 2013 and based in California, Applitools provides AI-based cloud engine solutions to help software engineers with visual testing for their applications.
The company’s Visual AI platform uses computer vision algorithms, enabling engineering teams to rapidly write, run, analyze, and maintain tests to ultimately release high quality applications at incredible speed and reduced cost. The investment can allow Applitools to leverage Thoma Bravo’s operating capabilities and deep experience in the software sector to accelerate its already impressive growth trajectory and further scale its innovative, market-leading platform.
“As digital transformation accelerates, more and more software developers are turning to Applitools’ cross-environment testing solutions to build and verify high-quality software applications users can trust,” said Sever, CEO of Applitools. “At this moment of dynamic change, businesses are looking for peace of mind and reliable, AI-augmented toolkits to maintain continuity across digital touchpoints. We look forward to partnering with Thoma Bravo to double down on our significant business momentum, drive continued product innovation and take our unique technology to new heights.”
“Applitools is solving problems that developers, quality engineers, and digital product owners face every day, and we are thrilled to be partnering with the team as they continue to define and expand the visual and functional test automation market using groundbreaking Visual AI and cross-browser testing technologies,” added Annie Wei, a VP at Thoma Bravo.
This is Thoma Bravo’s fourth deal with an Israeli firm including the SPAC merger with ironSource. In 2018, the company acquired cybersecurity firm Imperva for $2.5 billion. Its US data analytics subsidiary Qlik acquired US-Israeli software services provider Attunity in 2019 in a $560 million cash deal.