MongoDB, the New York-based general purpose database platform company, has announced it is acquiring San Francisco-based cloud database service mLab. The acquisition is expected to close in MongoDB’s fourth quarter fiscal year ending January 31st, 2019 subject to closing conditions.
Through an 8-K filing, VentureBeat found that the purchase price of mLab was $68 million. Prior to going public last year, MongoDB had raised more than $300 million in funding. MongoDB’s IPO price opened at $24 and it is now trading at above $64.
The acquisition of mLab will help MongoDB “deepen its relationships with developer-centric startup communities.” This is an area where mLab has been thriving. mLab currently has one million hosted databases on its platform across paid and free tiers. MongoDB currently has more than 7,400 customers in more than 100 countries and its database platform has been downloaded over 40 million times.
“MongoDB represents a dramatic sea change in how application developers work with data,” said mLab CEO Will Shulman in a statement. “There is a trend towards building software systems via microservices and deploying those systems in the cloud. As this trend continues, we anticipate it will open enormous market opportunities for global cloud databases, and MongoDB will be well positioned to power these types of software systems in ways that other database technologies cannot. We are very excited to come together with MongoDB to modernize the way companies store and manage their most valuable asset — their data.”
MongoDB also plans to integrate mLab into MongoDB Atlas. MongoDB Atlas is able to handle all the complexity of deploying and managing deployments on the cloud service provider of your choice including Amazon Web Services, Microsoft Azure, and Google Cloud Platform in just a few clicks or API calls.
“Atlas has seen tremendous momentum in its first two years since launch, growing over 400 percent year over year in the second quarter of this year. This reflects the popularity of MongoDB in the public cloud and the desire by many customers to consume MongoDB as a service,” added MongoDB president and CEO Dev Ittycheria. “The mLab acquisition will give us the ability to scale Atlas even faster. mLab has been providing a compelling service to their customers for seven years and we are delighted to bring this talented team into the MongoDB family.”