Atlanta-based Kobiton, a mobile testing platform that allows designers and QA teams to test their apps on real gadgets, both on their own desks and through the company’s cloud-based service, today revealed that it has gotten Mobile Labs, another Atlanta-based mobile screening service.

To finance the acquisition of its well-funded competitor, Kobiton raised a $14 million extension to its $5.2 million Series A from its existing investor BIP Capital and brand-new investor Fulcrum Equity Partners.

As Kobiton CEO Kevin Lee told me, we should not take that as the acquisition rate, but it’s probably a reasonable guess that the real cost isn’t too far off. The companies decreased to disclose the exact rate. Mobile Labs, which was established in 2011, had actually raised about $15 million prior to the acquisition, according to Crunchbase. The last time it raised outdoors financing remained in 2014. Kobiton and Mobile Labs do not share any typical financiers.

Kobiton CEO Kevin Lee. Image: Kobiton It’s fascinating that Kobiton, which released in 2017 and which may seem like a smaller player at first glance, was able to get Mobile Labs. Lee argues that a person of the factors Mobile Labs chose to offer is that while his business has actually long focused on using maker discovering to help developers construct the tests for their apps– and the open-source Appium testing structure– Mobile Labs had actually fallen behind in this location.

“They were a little slow to buy [AI] and I think they understood– and the rest of the marketplace, I think will understand it– if you don’t invest heavily and early, you sort of support the 8 ball,” Lee informed me.

He likewise kept in mind that there are a lot of apparent synergies in between the 2 companies. Mobile Labs has a lot of customers in the gaming and financial services area. A great deal of those clients are relatively brand-new to mobile, while Kobiton’s existing customer base is often mobile-first.

“They’ve been around for ten years and [have] a great deal of partners, a great deal of stuff outside the U.S.,” Lee noted. “They have mainly concentrated on what I would call large established enterprises in controlled markets or industries that are actually concerned about IP defense– so behind the firewall softwares– where they actually prospered well.”

Those Mobile Labs consumers, Lee said, were also trying to find AI/ML-based testing solutions and the acquisition will now permit the 2 companies to layer Kobiton’s innovation on top of the Mobile Labs option. There will be an upgrade course for these clients and they’ll be able to do so at their own rate. There’s no plan to sunset Mobile Labs’ existing services for the time being, though a few of Mobile Labs’ individual brands may alter names.

With this acquisition, Kobiton will more than double the number of its U.S.-based workers, though that remains in part due to the fact that a good portion of the business’s team is based in Vietnam.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.