UiPath Acquires Cloud Elements; RPA and API-Based Automation Converge
Robotic process automation (RPA) giant UiPath has acquired Cloud Elements, which develops an API integration platform. The result: UiPath partners and customers will gain the flexibility to “automate processes using an optimal mix of UI [user interface] and API-based automation.” Financial terms of the deal were not disclosed.
Related Update: UiPath IPO and S-1 SEC Filing.
This is technology M&A deal number 198 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
The acquisition arrives as UiPath prepares for a potential IPO (initial public offering). The company raised $750 million in Series F funding in February 2021, and achieved a post-money valuation of $35 billion. The round was co-led by existing investors Alkeon Capital and Coatue. Other returning investors include Altimeter Capital, Dragoneer, IVP, Sequoia, Tiger Global, and T. Rowe Price Associates.
UiPath Acquires Cloud Elements: RPA and API-based Automation Explained
RPA software allows businesses to write code and bots that rapidly automate manual tasks across multiple departments — from IT service desks to HR, finance, customer support and more. Demand for RPA software is accelerating. Indeed, global RPA software revenue is projected to reach $1.89 billion in 2021, up 19.5% from 2020, according to Gartner.
Amid that market growth, multiple companies are acquiring RPA software providers and associated RPA consulting skills. Key RPA software companies include Automation Anywhere, Blue Prism, and Microsoft Power Automate. Moreover, ServiceNow acquired Intellibot, an RPA startup, in mid-March 2021.
Cloud Elements brings more than 200 new native integrations to UiPath, and “enables new capabilities such as the ability to trigger an automation based on the occurrence of an event,” the buyer says. Amon the key areas to watch: Native integrations with various cloud and on-premises applications including ERP and CRM.
Cloud Elements customers include SAP, Capital One, DocuSign, iCIMS, FIS, Axway, PaySimple, TeamPay, Dun & Bradstreet, and Xerox, the seller says.
Cloud Elements raised $25 million in Series C funding in February 2019. Mercato Partners led that round, with additional funding from existing investors Access Ventures, American Express Ventures, Grotech Ventures, Harbert Growth Partners, Rally Ventures, and Upslope Ventures. Also, early Cloud Elements strategic investors included SAP and ServiceNow.
UiPath Acquires Cloud Elements: Executive Perspectives
In a prepared statement about the deal Cloud Elements deal, UiPaath CEO Daniel Dines said:
“By making automation both easier and faster to deploy, the UiPath Platform has the capability of significantly improving some of the most costly and time-consuming activities of the modern enterprise. The acquisition of Cloud Elements is just one example of how we are building a flexible and scalable enterprise-ready platform that helps customers become fully automated enterprises.”
Added Mark Geene, CEO of Cloud Elements:
“Automating the enterprise requires connecting the enterprise. Combining our API integration and management capabilities with UiPath’s powerful offering strengthens the glue of enterprise connectivity and expands the reach and efficiency of automation projects for enterprises across the globe.”
Concluded Ted Kummert, executive VP of products & engineering at UiPath:
“We have been investing in API integrations for some time, building out native integrations with commonly-used enterprise systems. As our customers do more with the UiPath Platform, the need to scale these integrations faster becomes a critical expectation. Combining our integration efforts with an established API integration platform company accelerates our initiatives in the API-based integration space and brings relevant expertise in house. This means UiPath customers now have ultimate flexibility to automate seamlessly using both UI automation and API automation capabilities.”