Wednesday, July 8, 2020

SUSE to acquire Rancher Labs

SUSE agreed to acquire Rancher Labs, a privately held open source company based in Cupertino, California that offers a Kubernetes management platform. Financial terms were not disclosed.

SUSE is a private company known for its enterprise Linux, edge computing and AI software solutions.

“Rancher and SUSE will help organizations control their cloud native futures,” said Sheng Liang, Rancher CEO. “Our leading Kubernetes platform with SUSE’s broad open source software solutions creates a powerful combination, enabling IT and Operations leaders worldwide to best meet the needs of their customers wherever they are on their digital transformation journey from the data center to cloud to edge.”

SUSE said the acquisition of Rancher is the first step in its inorganic growth strategy since becoming a fully independent software company in March 2019. SUSE recently reported that its ACV (annual contract value) bookings in Q2 2020 increased 30% year over year and global cloud revenue rose 70% year over year.

Rancher raises $40 million for Kubernetes management

Rancher Labs, a start-up based in Cupertino, California, closed a $40 million Series D funding round for its Kubernetes management platform.

Sheng Liang, CEO at Rancher Labs said, “In 2019, we experienced 169% year-on-year revenue growth, and this round of funding is the ultimate validation of the market and our unique technologies. Just as Linux became the standard computing platform for the data center, cloud, and devices in the 2000s, we fundamentally believe Kubernetes is fast becoming the ubiquitous enterprise computing platform for multi-cloud, heterogenous IT environments in the 2020s.”

The round was led by Telstra Ventures. One of its investors, Telstra Corporation, is a Rancher Labs customer and is Australia’s largest telecommunications company. The funding round also included participation from existing investors Mayfield, Nexus Venture Partners, GRC SinoGreen, and F&G Ventures, bringing total funding to date to $95 million.