AppDirect, a US-based software-as-a-service (SaaS) company which provides a cloud service platform and marketplace for distributing software apps, and which is backed by music and entertainment applications company Stingray Digital Group, has acquired US-based peer Standing Cloud, also a provider of cloud management services. Concurrent to the acquisition, AppDirect has also closed a $9m series B financing lead by iNovia Capital and including existing investors.
Standing Cloud was founded in 2009 and has received $10m in funding from investors including venture capital firms Foundry Group and Avalon Ventures, completing its series B round in late 2010. As part of the acquisition, AppDirect will become part of the Foundry Group portfolio of companies.
Previously, in October 2012, AppDirect acquired open source billing technology company jBilling, just three months after raising $8.5m in its series A round which included Stingray Digital Group and was led by iNovia Capital. iNovia also led AppDirect’s $3.25m seed round in 2011. AppDirect was founded in 2009 by Canadians Daniel Saks and Nicolas Desmarais.
Brad Feld, head of the Foundry Group, said: “At the Foundry Group, we’ve made it a point to invest in companies that drive long-term cycles of innovation. AppDirect fits that vision to a tee.”
Daniel Saks, president and co-chief executive officer of AppDirect, said: “Both AppDirect and Standing Cloud have worked to develop technologies that make the cloud easier to use. With this acquisition, we can join forces to accelerate the speed of innovation and move faster than ever before.”
Chris Arsenault, managing partner at venture capital firm iNovia Capital, said: “iNovia doubled up on AppDirect because the team can execute, it’s as simple as that. And now, with the Standing Cloud acquisition, AppDirect will accelerate its already amazing growth and cloud service marketplace leadership.”