iTKO Acquired for $330 Million – Cash
- July 10, 2011
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Congratulations to iTKO – “a leading provider of service simulation solutions for developing applications in composite and cloud environments, for $330 million in an all-cash transaction.” iTKO has roots in Dallas and Austin – and a couple of very good friends of ours work there, including two of the founders (one of whom I had the good fortune of working with at a prior company, and the other I’ve had the good fortune of meeting socially).
It is always great to see a local company do well. But what makes it even more interesting to us at BP3 is that iTKO is also an IBM partner. They had a modest presence at Impact in 2010- with a small booth on the trade show floor. But then this year, 2011, they had a helicopter on the trade show floor, and they were one of the prime sponsors of the whole Impact event. That is quite a turn of events for a company that once upon a time did not believe in marketing. From the press release:
ITKO’s approach and pioneering service simulation technology has disrupted the traditional application development market. It also has rendered conventional application lifecycle management (ALM) methods and technology obsolete for organizations developing complex composite applications, employing agile development, and leveraging cloud services and components. ITKO customers are able to accelerate application delivery cycle times, improve the quality of services, and save millions in lab infrastructure and testing costs. ITKO’s more than 100 percent bookings and revenue CAGR over four years is a testament to their ability to work with the world’s largest enterprises and systems integrators.
ITKO’s LISA solution enables organizations to “mock up” a service at enterprise speed and enterprise scale—even if the application is unfinished or unstable or the physical resource is unavailable. LISA, which is used by more than 125 enterprise customers, virtualizes an environment by simulating the behavior of external services without actually invoking them—e.g. how a checkout or fulfillment process should interact with a service, without actually authorizing a credit card or putting a box on a truck. “What-if” capabilities offer a whole new way to understand how an application might behave if components are changed—e.g. swapping an internal RDBMS for a cloud-based database or changing package shippers.
Our hats are off to iTKO – and CA technologies, who acquired them. What a great success story –