Another local IPO candidate is getting acquired, but the dream of eventually going public is still alive, according to its co-founder and CEO.
Applause, a Framingham-based app quality and testing company, announced on Wednesday that it has reached an agreement to be acquired by Vista Equity Partners, a San Francisco-based private equity firm that owns Boston-based Bullhorn and a number of other companies. Financial terms of the deal were not disclosed.
The company raised a $35 million Series F round last September, which brought total funding to over $115 million. Lead investors included Credit Suisse, Goldman Sachs, QuestMark Partners and Longworth Venture Partners.
Doron Reuveni, Applause's CEO and co-founder, previously told BostInno in an early 2016 interview that the company could be ready to file for an initial public offering as soon as the second half of that year or the beginning of 2017. But that plan seems to have changed, at least for now. However, Reuveni told Boston Business Journal this week that Applause's sale to Vista doesn't preclude an IPO from happening in the future.
"I don’t think it’s been pushed, but I think it potentially has been made significantly more credible and significantly larger from a scale perspective," he told BBJ.
Applause said it will continue to operate as an independent company, with no changes to executive leadership. In a statement, Reuveni called it a "tremendous milestone for Applause" and validates its mission to "deliver flawless digital experiences to the world."
The deal is expected to close in the coming weeks.
