US-based software development technology provider Digital.ai has been formed through a merger of three US-based software development platforms: corporate-backed XebiaLabs, CollabNet VersionOne and Arxan Technologies.
The deal was boosted by an undisclosed amount of funding from TPG Capital, a subsidiary of private equity group TPG, which also invested when XebiaLabs and CollabNet VersionOne completed a merger in January this year.
Digital.ai will offer an end-to-end software suite that relies on artificial intelligence and machine learning technologies to streamline software development processes and reduce costs.
The company has named Stephen Elop, chief executive of data analytics technology developer Apijet, as chairman and added Angela Tucci, chief operating officer of energy sector-focused software developer Uplight, to its board of directors.
Founded in 2008, XebiaLabs has created technology that exploits automation to speed up the process of developing and maintaining software products.
The company received more than $100m in a series B round backed by Susquehanna Growth Equity (SGE), a subsidiary of technology and trading firm Susquehanna International Group, as well as Accel and unnamed existing shareholders, in early 2018.
Updata Partners had led a $12m round for XebiaLabs in 2014, when it was identified as the company’s first institutional investor.
Founded in 1999, CollabNet has developed a cloud-based application lifecycle management platform that facilitates the development and release of software applications.
The company had disclosed a total of $57.5m in funding, $9.5m coming in a 2005 round featuring Intel Capital, the corporate venturing arm of chipmaker Intel, as well as Benchmark, Industry Ventures, Norwest Venture Partners and WR Hambrecht.
Norwest had previously led CollabNet’s $13m series C round in 2003, investing with Intel Capital, Benchmark, enterprise software producer Oracle and NTT Finance, a leasing and financial services subsidiary of telecommunications firm NTT.
Oracle and Intel also contributed to a $35m series B round for the company in 2000 alongside computer producers Dell and Hewlett-Packard, the latter having subsequently split into consumer-focused HP and enterprise-focused Hewlett Packard Enterprise.
Several software producers that are now defunct – Niku, Novell, Opus360, Sun Microsystems and TurboLinux – also took part in the round, which was led by private equity fund Bowman Capital and also backed by Benchmark, WR Hambrecht and private investor Marc Andreessen.
CollabNet’s backers also included Vector Capital. It merged with peer VersionOne in 2017 to form a company known as CollabNet VersionOne before being acquired by TPG Capital in October 2019, in a deal that involved a $500m equity commitment.
Spun out of Purdue University in 2002, Arxan Technologies has built a cybersecurity software platform intended to ensure applications are developed to be secure from the outset.
Arxan had raised at least $42m in funding from investors including Trident Capital, Dunrath Capital, EDF Ventures, Paladin Homeland Security Fund and Solstice Capital before being acquired in 2013 by private equity firm TA Associates, which has now sold its entire stake.
