Harness and Traceable Gear Up for a $5 Billion Mega-Merger
Deal News | Feb 10, 2025 | EIN
Jyoti Bansal, known for the acquisition of his company AppDynamics by Cisco for $3.7 billion in 2017, is orchestrating a novel merger between his two companies, Harness and Traceable. The merger, set to finalize soon, will create an entity with 1,100 employees and a $5 billion valuation, targeting a 50% growth rate with $250 million in expected annual revenue by 2025. This combination aims to expand product offerings and insulate the companies from competitors like HashiCorp and Akamai. Bansal, who runs Big Labs and conceptualized both startups, seeks to rectify personal unfulfillment after the sale of AppDynamics and streamline management focus with support from Steve Harrick of Institutional Venture Partners. Initially structured as a unit within Harness, Traceable will benefit from tighter integrations with main products and shared customer base. This strategic consolidation is part of Bansal's vision to maximize efficiencies and foster growth.
Sectors
- Software Development
- Technology
Geography
- United States – Both companies, Harness and Traceable, are based in the United States, with references to a San Francisco headquarters.
Industry
- Software Development – Both Harness and Traceable are involved in software development—Harness with code management tools, and Traceable with data security software.
- Technology – The merger involves tech companies specializing in tools for engineers and technology leaders, focusing on code management and security.
Financials
- $5 billion – Valuation of the merged entity of Harness and Traceable.
- $250 million – Expected 2025 annualized revenue for the combined company.
- 50% – Growth rate anticipated for the merged company.
- $3.7 billion – Price Cisco paid for AppDynamics in 2017.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Jyoti Bansal | Co-Founder and CEO | People | Entrepreneur and CEO of Harness and Traceable, orchestrating the merger. |
| Harness | Merging Company | Companies | A software company providing code management tools, co-founded by Jyoti Bansal. |
| Traceable | Merging Company | Companies | A software company focusing on data security, co-founded by Jyoti Bansal. |
| Cisco | Buyer | Companies | Acquired AppDynamics in 2017 before its IPO. |
| Sanjay Nagaraj | Co-Founder | People | Co-founder of Traceable and will serve as General Manager post-merger. |
| Steve Harrick | Board Member | People | Institutional Venture Partners board member involved with Harness and Traceable. |
| Institutional Venture Partners | Investor | Companies | Venture firm supporting the merger, with Steve Harrick on the boards of both companies. |