Seattle-based cloud company Skytap has been acquired by Kyndryl Holdings Inc. (NYSE: KD), an information technology services company headquartered in New York City.
The companies announced the deal Monday but didn't disclose the financial terms. The acquisition comes after Skytap raised $18 million in October from Vistara Growth.
"The acquisition of Skytap reflects the proactive steps we're taking to invest in our mission-critical capabilities," Dave Simpson, global practice leader for cloud at Kyndryl, said in a news release.
A Kyndryl spokesperson said the companies were not disclosing Skytap's total employee count but added that the team will join Kyndryl. Skytap has more than 160 employees listed on LinkedIn.
The spokesperson added that Skytap is now "in the Kyndryl family of brands."
Related coverage
Skytap was founded in 2006. The company's technology moves applications to the cloud for clients. Skytap's services can help with app development, app testing and virtual software training. Kyndryl said in the release acquiring Skytap will boost Kyndryl's cloud services.
After raising $45 million from Goldman Sachs in 2017, Skytap planned to go public within two years.
"This is going to give us a real shot in the arm," then-CEO Thor Culverhouse said in 2017. "This is the last round of cash we need before we ultimately IPO."
Culverhouse left Skytap in 2019, after which Brad Schick, formerly the company's chief technology officer, took over as CEO.
Kyndryl spun out of IBM in 2021. In addition to building and managing IT systems, the company also has a consulting business. Along with the Skytap acquisition, Kyndryl on Monday announced it is divesting its Securities Industry Services platform, which offers brokerage services for the Canadian securities industry. Kyndryl is selling the platform to Broadridge Financial Solutions, a tech infrastructure company that caters to financial services firms.
Kyndryl generated $16.1 billion in revenue during fiscal 2024, which ended March 31, down from $17 billion the previous year. The company had about 90,000 employees in over 60 countries as of March 31, 2023.
For more stories like this one, sign up for Seattle Inno newsletters from the Puget Sound Business Journal and the American Inno network.
