25 June 2020
Global investment firm The Carlyle Group (NASDAQ: CG) announces that it has sold Eggplant, a global digital test automation and monitoring software provider, to Keysight Technologies, Inc (NYSE: KEYS) for $330m.
Carlyle Europe Technology Partners III (CETP III) acquired Eggplant in 2016, recognising early the importance of software test automation for DevOps, an emerging trend for continuous software delivery where development and operations teams collaborate to build, test, deploy and monitor applications with speed, quality and control. With a differentiated technology, Eggplant was well positioned to become a leader in its segment through a focus on multi-platform capabilities, the end-user experience and business outcomes. Through continuous product innovation, including the first-to-market introduction of AI-driven test creation, investing in its go-to-market capabilities and expanding the management team, including the appointment of Dr John Bates as CEO, Eggplant has more than tripled revenue during CETP III’s ownership to become a recognised industry leader.
Dr John Bates, CEO of Eggplant, said: “Carlyle has been a valuable partner for Eggplant’s management team over the past 4 years, supporting the business to deliver strong growth and innovative customer solutions, as the business has established itself as an industry leader. We look forward to continuing to further build on our leadership position in the industry and support our customers as part of Keysight Technologies.”
Michael Wand, Managing Director and Co-Head of the CETP advisory team who led the transaction, said: “Eggplant is a great example of Carlyle’s ability to create value. Having identified Eggplant as a founder-owned business with substantial potential early in the cycle, we worked closely with its world-class management team to support and invest in the business, helping it to become a market leader in software development. We are confident that Eggplant will enjoy continued success in the future as part of Keysight Technologies.”
Eggplant marks the sixth exit for CETP III, a 2014 vintage fund, and another exit for CETP’s infrastructure software practice, following deals such as Apama, UC4/Automic and ITRS.