Turbonomic Acquisition, Valuation, Funding & Investors

Turbonomic was acquired by IBM for $1.8B in April 2021.

Turbonomic acquisition price

$1.8B

Acquired by IBM · Apr 2021

Cumulative funding Turbonomic raised

$132M

across 3 funding rounds

Key investors in Turbonomic

  • ICONIQ Capital
  • Globespan Capital Partners
  • General Atlantic
  • Bain Capital
  • Highland Capital Partners

Turbonomic Overview

About Turbonomic

Turbonomic is a Boston-headquartered provider of application resource management and network performance management software. The platform optimizes performance, compliance, and costs in real-time across hybrid clouds like VMware, AWS, Azure, and Kubernetes. Acquired by IBM in 2021, it automates resource allocation at every layer of the application stack for enterprises worldwide.


Founded

2008

HQ

United StatesBoston, MA

Status

Acquired

Customer focus

B2B

Revenue model

Subscription

Valuation

$800M (Jan 2017)

Turbonomic Acquisition

Turbonomic was acquired by IBM for $1.8B on 29 April 2021.

Before the acquisition Turbonomic had raised $132M across 3 funding rounds.

Turbonomic acquisition details
AcquirerDateTypePrice
29 Apr 2021Strategic M&A$1.8B

Turbonomic Valuation

Turbonomic is currently valued at $800M, based on its Series E in January 2017.

The $50M round was led by General Atlantic, with participation from ICONIQ Capital.

Turbonomic's valuation has grown 3.5x from $231M at its Series C in May 2013 to $800M in January 2017, across 3 priced rounds.

Turbonomic valuation by funding round

Turbonomic valuation by funding round
DateStageValuation
Jan 2017Series E$800M
Jan 2015Series D$500M
May 2013Series C$231M

Turbonomic Funding History

Turbonomic has raised a total of $132M across 3 funding rounds.

Turbonomic's first fundraising round was a $32M Series C in May 2013. The most recent completed round was a $50M Series E in January 2017.

Turbonomic funding rounds

Turbonomic funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Jan 2017Series EGeneral Atlantic (lead); ICONIQ Capital$50M$800MTurbonomic, formerly VMTurbo, is a performance assurance company delivering autonomic software for hybrid cloud management. Founded in February 2009 and based in Boston, the company's platform automatically manages application performance by matching application demand with infrastructure supply in real-time, enabling decision automation for workload placement, scaling, and resource allocation across on-premises, public, private, and hybrid cloud environments. The company announced a $50 million Series E round on January 23, 2017, led by new investor General Atlantic and joined by existing investors Bain Capital Ventures, Highland Capital, Globespan, and Iconiq. Gary Reiner, former Chief Information Officer of General Electric and operating partner at General Atlantic, joined Turbonomic's Board of Directors as part of the investment. As of the funding announcement, Turbonomic had raised approximately $120–$125 million across five funding rounds since 2009. The company had just over 400 employees at the time and planned to add 150 more, using the new capital to expand its sales team in the U.S. and Europe and to hire additional engineers and professional services personnel. Turbonomic served customers across all verticals including tech, financial, healthcare, insurance, education, and government, including marquee clients such as NASA, GE Capital, Fifth Third Bank, BMO, Expedia, Domino's, Coca-Cola, and IBM. The company later merged with IBM in June 2021 for $1.83 billion.
Jan 2015Series DICONIQ Capital (lead); Highland Capital Partners; Bain Capital; Globespan Capital Partners$50M$500MTurbonomic (formerly VMTurbo) raised $50 million in January 2015 from investors ICONIQ Capital, Bain Capital Ventures, Globespan Capital Partners, and Highland Capital Partners. The company operates in the virtualization and cloud technology space.
May 2013Series CGlobespan Capital Partners (lead)$32M$231MTurbonomic, based in Boston, Massachusetts, develops an autonomic platform for virtual and cloud environments that self-manages in real-time to ensure application performance using a patented decision engine. Launched in 2010, it became one of the fastest-growing companies in virtualization and cloud, trusted by thousands of enterprises for mission-critical applications. Globespan Capital Partners is listed among its investors, including Bain Capital Ventures, Highland Capital Partners, and Iconiq Capital. In a Series C-1 round on May 1, 2013, Turbonomic raised $7.79 million at a post-money valuation of $231.09 million. The company secured funding across multiple rounds totaling $157 million by 2017, with the latest on January 22, 2017.

Who has invested in Turbonomic?

5 investors have backed Turbonomic across its funding rounds, including ICONIQ Capital, Globespan Capital Partners, General Atlantic, Bain Capital and Highland Capital Partners.

Lead investors include General Atlantic, ICONIQ Capital and Globespan Capital Partners.


Turbonomic Investors

Investors in Turbonomic by funding rounds participated
InvestorHQRoundsRoleFirst check
ICONIQ CapitalUnited StatesSan Francisco, CA2LeadJan 2015
Globespan Capital PartnersUnited StatesBoston, MA2LeadMay 2013
Highland Capital PartnersUnited StatesLexington, KY1ParticipantJan 2015

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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples

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Acquisitions by Turbonomic

Turbonomic has acquired 2 companies to date.

Last acquisition by Turbonomic was on November 4th 2019. Turbonomic acquired SevOne for undisclosed valuation.


Latest Acquisitions by Turbonomic

SevOne
ParkMyCloud
Description
SevOne is a Waltham, Massachusetts-based provider of digital infrastructure monitoring software, utilizing its patented Cluster architecture for performance analytics across networks, servers, and applications. The platform ingests metrics, flows, and logs from software-defined networks and cloud environments, serving five of the seven largest global investment banks, CSPs, and enterprises. Named a Visionary in Gartner's 2015 NPMD Magic Quadrant, SevOne was acquired by IBM in 2016 and integrated into the Instana observability suite.
ParkMyCloud is a Herndon-based SaaS platform for cloud cost optimization, now part of Turbonomic. The company automates identification and elimination of idle cloud resources across AWS, Azure, and Google Cloud, serving enterprises in sectors like foodservice and media. ParkMyCloud governs multi-cloud spend with policy-driven scheduling and rightsizing recommendations.
HQ CountryUnited StatesUnited States
HQ City
Boston, MA
Sterling, CO
Deal Date4 Nov 201910 May 2019
Valuationundisclosedundisclosed
EV/Revenue
EV/EBITDA

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Turbonomic Competitors

Turbonomic competitors include listed companies like Harbin Boshi Automation, KPIT Technologies and Proto Labs, and private ones like SafetyCulture, Kylinsoft and Exotec.

Public and private companies comparable to Turbonomic
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Harbin Boshi AutomationChinaChinaPublicly listed$422M$106M$1.7B3.5x
SafetyCultureAustraliaSydneyPrivate$84M-$1.8B21.1x
KylinsoftChinaTianjinPrivate$209M-$1.6B7.6x
KPIT TechnologiesIndiaIndiaPublicly listed$673M$128M$1.6B2.2x
ExotecFranceLillePrivate$100M-$2B20.0x
Proto LabsUnited StatesUnited StatesPublicly listed$533M$65M$2.1B3.4x

Turbonomic Public Comps

Turbonomic is no longer listed, but its public comps include Harbin Boshi Automation, KPIT Technologies, Proto Labs, Glodon Co, Zwsoft, Imdex, Vitec Software, Qt Group, GuoChuang Software and Shenzhen Tianyuan Dic.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Harbin Boshi Automation$422M$106M3.5x3.5x14.0x11.4x
KPIT Technologies$673M$128M2.3x2.2x11.8x11.3x
Proto Labs$533M$65M3.6x3.4x29.6x21.3x
Glodon Co$909M$141M1.8x1.8x11.4x9.8x
Zwsoft$133M$12M7.4x6.9x79.9x49.1x
Imdex$370M$94M3.7x3.6x14.6x11.4x
Vitec Software$371M$151M3.7x3.5x9.1x9.0x
Qt Group$249M$62M4.3x3.9x17.3x16.0x

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Common questions about Turbonomic

When was Turbonomic founded?Turbonomic was founded in 2008.
Where is Turbonomic headquartered?Turbonomic is headquartered in Boston, MA, United States.
Is Turbonomic publicly listed?No, Turbonomic was acquired by IBM in April 2021.
Who acquired Turbonomic?Turbonomic was acquired by IBM in April 2021.
How much was Turbonomic acquired for?Turbonomic was acquired for $1.8B in April 2021.
What is Turbonomic's valuation?Turbonomic was last valued at $800M in its Series E in January 2017.
How much funding has Turbonomic raised?Turbonomic has raised $132M across 3 funding rounds.
What was Turbonomic's last funding round?Turbonomic's last funding round was a $50M Series E in January 2017, led by General Atlantic.
Who are Turbonomic's investors?Turbonomic's investors include ICONIQ Capital, Globespan Capital Partners, Highland Capital Partners, General Atlantic and Bain Capital.
Which companies are comparable to Turbonomic?Companies comparable to Turbonomic include Harbin Boshi Automation, SafetyCulture, Kylinsoft, KPIT Technologies, Exotec and Proto Labs.
How many companies has Turbonomic acquired?Turbonomic has acquired 2 companies, including SevOne and ParkMyCloud.

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