'We will acquire this year': Boomi looks to scoop up competitors as new CEO drives aggressive expansion
Boomi, under new CEO Steve Lucas, is looking to expand internationally and make industry acquisitions.
Boomi aims to expand internationally and acquire industries as it wants to become a "consolidator' in the tech sector.
One of the most successful tech companies in the region since the turn-of-the century, founded in 2000 by Rick Nucci, and headquartered in Chester County has ambitious plans to expand its revenue, staff and footprint. Steve Lucas, Boomi's new CEO, is a veteran tech executive who wants to see the company zig, while the rest of the industry zags.
This means acquiring new companies and workers, as well as re-hiring those laid off by other tech firms.
Boomi software allows businesses to connect and integrate data, people, and applications within a business using cloud technology with minimal coding. About 20,000 companies, including Comcast Corp. Sky, Dropbox and Moderna, use the technology. Lucas was chosen to lead the company last December after stints at Adobe, Marketo SAP and Salesforce.
Boomi is a company in a technology space where mergers, acquisitions, and IPOs have been largely stagnant due to the uncertain capital markets. Lucas wants to be aggressive while other companies cut staff and play defense.
We will [M&A]. Lucas stated that "we will acquire this coming year." We see a lot of opportunity when we examine our competitors in the market, the changes that are happening with MuleSoft, TIBCO, and other companies. Boomi must be able to consolidate.
MuleSoft was the hardest-hit unit during the January Salesforce layoffs that affected 7,000 employees. Bloomberg reported that Salesforce may be looking to sell the business. Lucas believes MuleSoft is "being slowly digested" by Salesforce.
He claimed that "hundreds of" former MuleSoft employees have applied for Boomi’s 200 open jobs.
We are hiring, which is the exact opposite of what most tech companies do. Lucas stated that they were hiring. Boomi employs about 1,500 people, of which over 200 are local. The company is currently looking for new office space in order to accommodate its anticipated growth.
It recently opened a Bengaluru office, India. The company plans to double the number of engineers there. It has between 250 and 300 employees currently in India. The company also plans to open a new office in North America soon, but has declined to reveal the exact location.
Lucas also said that the company is looking for new office space near Philadelphia. Boomi's Chesterbrook headquarters are located at 1400 Liberty Ridge Drive, but Lucas says the company is actively looking for space closer to Philadelphia or in King of Prussia. Lucas stated that the new local headquarters would be "no smaller" than its current 40,000-square-foot Chesterbrook location. He added that it would feature a post pandemic design, which he likened to that of a Starbucks but "ten times larger."
Lucas stated that this is his third time as CEO and he has been given the task of accelerating growth. Boomi was purchased by Francisco Partners & TPG Capital for $4 billion from Dell in 2021. Both investment firms share the same big goals as Lucas.
They believe Boomi can be a multi-billion dollar standalone software company. Lucas said, "I believe that."
Boomi's revenue is expected to exceed $500 million this year, and Lucas believes it will only be "a few years" before it reaches $1 billion. Lucas said that this is "just a point in time".
He said, "I'm confident that within 10 years our company can reach $5 billion."
The company's growth could lead to a public offering. Boomi's opportunity may not be immediately apparent, as initial public offerings for tech companies are at a standstill amid an uncertain capital market.