Rally Software Acquires Flowdock

Posted Feb 13, 2013

Rally Software has acquired a social collaboration hub company known as Flowdock.  The terms of the deal were not disclosed.  Flowdock raised around $650,000 in seed funding in October 2011.  Investors in this round included IDG Ventures, CrunchFund, and several angel investors.

Rally Software is an SaaS company that offers lifecycle management (ALM) tools.  Rally uses Flowdock to work on the project management software AgileZen.  Rally acquired AgileZen in 2010.  The Flowdock acquisition will enable Rally to compete heavily against other collaborative development companies.

“Collaboration is fundamental to Agile software development. Flowdock represents a powerful way for teams to collaborate on projects directly from their usual workflow,” stated Rally CEO Tim Miller.  “Flowdock introduces an innovative way for teams to chat so users can stay in context and in flow.”

Based in Helsinki, Flowdock is known for their “shared team inbox with group chat.”  Flowdock’s real-time capability comes from a messaging backend that also works as an SMTP server accepting incoming e-mails.  The messages are stored in MongoDB.  Rally will be using the acquisition to create a new R&D facility in Helsinki.  All 9 employees will be joining Rally, bringing the total employee count to 379.

Rally raised $20 million in 2007 from Meritech Capital Partners.  Rally has around 154,000 paid users and over 1,000 customers including 36 of the Fortune 100 companies.

[Source: TechCrunch]