Partnerships / Acquisitions

Business App Developer Progress Buys Chef For $220M

Progress has announced that it will purchase Chef for $220 million, with the transaction to be finalized in October, according to a press release.

Chef works in providing software to let companies automate IT departments.

Progress works in products to develop business software applications, and Chef will assist by providing "continuous delivery, application delivery, dependable compliance, remediation automation, desktop management and more," according to a Chef blog post, which also touted the fact that Progress is publicly traded and has much greater resources to help customers.

Chef will remain independent until the deal closes, continuing its regular operations until then. After that, Progress will continue Chef's operations, the post stated.

In a separate blog post, Progress CEO Yogesh Gupta said the acquisition is "a step function" to help bolster everyone's operations all at once.

"When looking for businesses to acquire, we look for companies with mission-critical products that solve real customer challenges, and then, by dedicating substantive resources and a tireless focus on customer success, we make those customers even more successful," he wrote. "The success of an acquisition depends on executing a sound go-forward plan — one that ensures greater value for customers, greater opportunities for employees and greater sustained value for shareholders. Chef checks all these boxes and then some."

Gupta touted Chef's abilities in the cloud automation field. With continuous application and the automation of remediation, Gupta said the company would find itself in a better position.

Automation has been the wave of the future for businesses, particularly following the pandemic's arrival earlier this year.

With business running slower everywhere amid people working from home, the cloud solution in particular has proved fruitful, PYMNTS reported, through streamlining, reduced costs and tailoring features to companies' specific business models.

Those services have had the effect of aiding companies through a time in which cash flow and access to capital are tight.

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