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Connecticut-based Tangoe Inc. will acquire Waltham-based Internoded Inc. for undisclosed terms, the two companies report.
Tangoe, a venture capital-backed firm providing life cycle management for enterprise communications devices and plans, bought Internoded, a bootstrapped maker of security and management software for business applications on smart phones, in what Tangoe CEO Albert Subbloie called a “strategic deal.” Tangoe, which has historically helped companies buy large numbers of devices and manage mobile voice and data plan purchasing, will now be able to integrate software management, Subbloie said. He declined to say whether the deal involved any cash transaction.
“What Tangoe didn’t do is what I call manage the enterprise footprint that resides on the device,” he said. “E-mail is probably the most popular application and it has fueled the massive shift from employee liable to corporate liable. Implementing configuring, managing, and securing that application and any other apps is what Internoded has very successfully done.”
Internoded’s 25 employees will remain on as the company becomes a division of Tangoe operating out of its current Waltham facility. Internoded CEO Julie Palen, who founded the company in 1993 as a Lotus Domino development shop, will remain as leader of that division. Tangoe plans to phase out the Internoded brand by June, she said.
“My team continues to manage about 60,000 devices on behalf of our customers,” Palen said. In addition, Tangoe’s sales force, which is about the size of her entire company, is very excited to begin selling Internoded’s offering, she said.
Tangoe, which will have 325 employees after the acquisition, and projects $60 million in revenue in calendar year 2009, plans to hire research and development staff in the company’s Internoded unit. Other hiring at Tangoe will be in the marketing and sales divisions, he said.
The next step for engineers in Tangoe’s Internoded division will be to develop monitoring software that will tie into the telecom expense management side of Tangoe’s business, enabling managers to change end-users’ voice and data plans as needed, Palen said. The company expects to add the capability in May, and develop it in more sophisticated ways by the third quarter of 2009.
Last year, Subbloie announced plans to pursue an IPO for Tangoe, which so far has at least $21.5 million in venture funding. Backers include New York-based Investor Growth Capital Inc. and Orix Venture Finance, a division of Orix Finance, a debt financing provider, according to early investor and board member Gary Golding, general partner of New Jersey-based Edison Venture Funds.
Last August, Tangoe investors participated in a $13.5 million Series F round, which the company used to acquire New Jersey-based Information Strategies Group Inc., its second acquisition of 2008. Subbloie declined to disclose the total amount of the company’s venture funding.
Plans for an IPO are still very much in the pipeline — possibly by the first quarter of 2010, Subbloie said.
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