Cloud and security monitoring platform provider Datadog ($DDOG) has acquired Undefined Labs, a software testing and observability company for developer workflows. Financial terms were not disclosed.
This is M&A deal 319 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
Datadog launched a successful IPO in 2019 -- apparently turning down a buyout offer from Cisco Systems along the way.
More recently, the cloud and security monitoring company has been building out a partner channel and MSP ecosystem since that time. The Datadog Partner Network, unveiled in January 2020, is designed for Managed Service Providers, System Integrators, Resellers and Referral Partners, as well as Technology Partners that build custom solutions on the Datadog platform.
Datadog Acquires Undefined Labs: Deal Details
Still, the Undefined Labs acquisition focuses more on corporate developers than channel partners. The goal: Help corporate developers to "ship higher quality software more frequently."
Ilan Rabinovitch, VP of product and community at Datadog, explained the deal and its potential customer benefits this way:
"In modern distributed systems, even small changes can have a big impact on applications' performance and availability. By enabling observability early in the development cycle, we can help teams optimize builds and gain visibility into key continuous integration and delivery workflows. Undefined Labs will form a solid basis for making observability a key part of every development cycle by diagnosing, catching, and avoiding performance challenges long before they hit production."
Added Borja Burgos, co-founder and CEO at Undefined Labs:
“Joining Datadog is very exciting for the Undefined Labs team. We believe that visibility into pre-production is only the beginning and the greatest value will come from our customer’s ability to correlate development and production data.”
Burgos previously launched, built and sold a software company that Docker purchased in 2015. He then co-launched Undefined Labs in 2018.
Burgos now transitions to Datadog as director of product management. Also, Undefined Labs Co-founder and CTO, Fernando Mayo transitions to Datadog as director, product engineering. All other Undefined Labs employees based in Atlanta, Georgia and Madrid, Spain, will become Datadog employees -- though actual headcount figures were not disclosed.
Datadog Cloud Monitoring, Security Business Growth
Meanwhile, Datadog remains in rapid-growth mode, according to Q2 2020 financial results released on August 6. Indeed, revenue was $140.0 million in Q2 2020, up 68% from Q2 of 2019.
In addition to its core cloud monitoring tools, Datadog earlier this year introduced Security Monitoring -- which "enables real-time threat detection across the entire stack and deeper collaboration between security, developers, and operations teams."
