FreshworksThe publicly listed SaaS firm is acquiring US-based startup Device42 for $230 million. Disclosure In an SEC filing. Along with the acquisition disclosure, Freshworks revealed that founder Girish Matrubotham has stepped down as CEO. Dennis Woodside, who joined Freshworks as president in September 2022 and previously served as CEO of Motorola Mobility, will take over as the new CEO. Mathurbotham becomes the Executive Chairman.

Device 42 Helps companies manage their IT infrastructure and provides insight into their systems, from mainframes to the cloud. It started recently Offer to track carbon emissions. By providing a comprehensive and real-time inventory of all IT assets—including hardware, software, and network components—Device42 claims it can help organizations. Optimize resource allocation With greater visibility into their systems.

Device42 is Freshworks' first acquisition since the company — founded in India but now headquartered in San Mateo — went public in 2021. “With more than 800 customers worldwide, Device42 provides enterprise-grade IT asset management capabilities, which we believe can further strengthen our fresh service offering,” Mathrubotham earned on Wednesday. told analysts on the call.

“We have historically partnered with Device42 on major business opportunities in the field. And once the transaction closes, we look forward to serving customers as a cohesive team. We expect the transaction to close in Q2.” I will close later,” he added.

was a startup. Raised $38.5 million. In previous financing rounds from investors including Long River Investments and Elm Street Ventures, according to Crunchbase.

Mathrubotham has been a key figure in India's SaaS growth story for more than a decade – he founded Freshworks in Chennai in 2010 – and although he will continue to serve on the board of Freshworks, Nasdaq-traded Freshworks Shares fell 25% in trading. Markets closed, potentially wiping about $1.4 billion off the firm's market cap. Freshworks, which competes with firms including Salesforce, ServiceNow, Hubspot and Zoho, ended trading on Wednesday with a market cap of about $5.3 billion.

“Management stated that Mr. Mathrubotham's transition to chairmanship was planned as part of succession planning and the change will allow him to focus on long-term product strategy and AI. Although most While the above change is troubling, we are comforted by Mr. Woodside's strong track record and the critical role he has played in building Freshworks' enterprise GTM movement since joining the company,” Morgan Stanley analysts said in a note on Thursday. wrote in a note.

Freshworks reported its first-quarter earnings on Wednesday, showing continued weakness in its small and medium-sized business and customer service segments. Freshworks said it is optimistic about the adoption of its AI-powered solutions — Freddy AI and Co-Pilot — across different consumer segments.