Freshworks, a publicly-listed SaaS firm, has acquired U.S.-based startup Device42 for $230 million. Alongside the acquisition disclosure, Freshworks revealed that founder Girish Mathrubootham has stepped down as CEO and will become executive chairman. Dennis Woodside, previously CEO of Motorola Mobility, will take over as the new CEO.
Device42 helps companies manage their IT infrastructure and provides insights into their systems. It recently began offering carbon emissions tracking. Freshworks believes Device42’s capabilities will strengthen its Freshservice offering.
The acquisition, Freshworks’ first since becoming a public company in 2021, is expected to close later in Q2.
Mathrubootham, a key figure in India’s SaaS growth story, will continue to serve on Freshworks’ board. Shares of Nasdaq-traded Freshworks fell 25% after the markets closed, potentially erasing about $1.4 billion from the firm’s market cap.
Despite the CEO transition, analysts remain optimistic about Freshworks’ growth prospects, citing Woodside’s strong track record and the company’s continued optimism about the adoption of its AI-powered solutions.