Facebook has acquired Parse in Cash and Stock Deal Valued $85 Million.
Parse, which was founded in 2011 and has raised $7 million from investors like Ignition Partners, helps companies build mobile applications across different operating systems.
Parse is basically an app that makes it much easier to build other apps by giving users a library of some of the most widely-used functions in an app.
Facebook connect and push notifications — things common in most apps, but tricky to build — are available through Parse.
.In recent months, Parse had been raising a financing round that would have valued it at north of $50 million and it had received term sheets.
Parse was founded about two years ago by a small group of seasoned Googlers and Y Combinator alums who got together to build a useful set of back-end tools for mobile developers. They originally called their back-end service, the “Heroku” of mobile in a homage to what was one of YC’s biggest exits to date — the $212 million sale of Heroku to Salesforce.com. They offer services that help mobile developers store data in the cloud, manage identity log-ins, handle push notifications and run custom code in the cloud.
Facebook won the deal amid what we’ve heard was a competitive process with many of other Valley’s other biggest potential buyers. Parse CEO and co-founder Ilya Sukhar said that he chose Facebook over other suitors — without naming names — because the company was a better cultural fit.
Facebook has agreed to buy startup Parse in a cash-and-stock deal valued at about $85 million, according to people familiar with the matter.
People familiar with the matter said Facebook swooped in with an offer instead. Dropbox Inc. also bid for Parse, said one of the people, though its bid was lower than Facebook’s. Google Inc. and Yahoo Inc. had also expressed interest in the startup, this person said.
Facebook has been working to beef up its mobile offerings as users rapidly shift from desktops to mobile devices. Earlier this month, the company introduced Facebook Home, a new application for Android devices.
The Menlo Park, Calif., company has made a string of modestly sized “acqui-hires” in the past, with the notable exception being its nine-figure purchase of photo-sharing site Instagram last year.
“Parse has agreed to be acquired by Facebook,” Parse co-founder Ilya Sukhar said in a blog post. “We expect the transaction to close shortly. Rest assured, Parse is not going away.”
John Connors, a partner at Ignition Partners, said the deal will enable Facebook to offer a range of “data and services for mobile developers” overnight. He added that Parse “had a lot of potential for creating a really big company—a number of enterprise and telecom companies had been evaluating them very, very closely.”