Keysight Technologies has acquired Eggplant, an automated software testing tool provider from private-equity firm Carlyle Group, for $330 million.
The acquisition sees two companies that support innovation across the protocol, physical, and application layers in the automated software testing market come together. Eggplant is renowned for its AI-driven automated software testing tools for clients across different industries, including financial services, healthcare, retail, telecom, and media. Meanwhile, Keysight provides solutions that optimize networks and bring electronic products to market faster and at a lower cost. It also offers design simulation, prototype validation, manufacturing tests, optimization in networks, and cloud environments.
Eggplant is expected to improve Keysight's capabilities with the integration of its next-generation technology.
However, the real winner here is Carlyle Group, which is set to make seven times its investment in the sale. In 2016, the private equity firm acquired Eggplant, its 40th transaction in the software sector. Eggplant was founded in 2008 as Testplant, headquartered in London with development centers across the U.S. and U.K. In 2019, Eggplant generated $38 million in revenue.
"As a recognized leader and trusted advisor in layer 1-7 design and test, Keysight is excited to add Eggplant's test capabilities for the software application layer, aligning with our strategy to grow our first-to-market software-centric solutions," said Keysight chairman and CEO Ron Nersesian. "We're thrilled to welcome the Eggplant team to the Keysight family and look forward to working together in the fast-growing intelligent software test market with differentiated software-as-a-service technologies."
Eggplant's Chief Executive Officer, Dr. John Bates, added that this partnership would provide the company with the ability to expand its intelligent automation platform and its relationship with several organizations at a global level. In addition to this, Dr. Bates welcomes the companies’ shared vision to accelerate innovation and effectively serve customers on their way through digital transformation. Bates will join the Keysight leadership team reporting to Soon-Chai Gooi, President of Keysight's Electronic Industrial Solutions Group.
"We're proud of what we have accomplished through our employees and partners' contributions, and we are excited about this next chapter," Dr. Bates said in a statement.