Flowdock acquired by Rally Sofware

Flowdock is a real-time collaboration and group chat service for developers.

The solution aggregates activity from project management tools (Pivotal Tracker, JIRA), version control systems (GitHub, BitBucket, Kiln), customer feedback channels (Zendesk, email lists) and many other sources into a single shared stream. Seed funding from Gil Penchina, CrunchFund, Marten Mickos, and IDG Ventures. Company was preparing to raise Series A funding at the time of the acquisition. Based in Helsinki, Finland and San Francisco, California.

Transaction Summary

  • In September 2012, Cerca Trova introduced Flowdock to Rally Software, which was preparing for IPO and needed to respond to a strategic acquisition by its main competitor
  • Flowdock’s collaboration platform was a strong fit with Rally’s core project management product for developers
  • Deal closed within four months from first meeting

Cerca Trova Advisors Role

  • CTA brought two parties together that were an excellent fit who just did not know it at the time
  • Led negotiations to bridge very significant valuation gap and keep discussions moving forward past many roadblocks until win-win achieved
  • Lead role in pushing tax and legal advisors to develop, create, test, and use new structures for tax optimization under Finnish law to create a structure that worked for both the buyer and seller (RSUs)