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Congrats to the GitPrime team. While the acquisition price is public, would love to learn more about revenue or # of customers. They must have had some serious

• windexh8er 7y ago
  > While the acquisition price is public, would love to learn more about revenue or # of customers. They must have had some serious revenue/traction to be bought for $170M. Not exactly. I was at a startup that was only doing about $15M in annual revenue that got picked up for $350M. A lot of common PE values in tech are well past 25x in public stocks which seems (oddly) "normal" these days.
  • mi100hael 7y ago
    Usually the Earnings part of P/E is 0 in startup acquisitions, so technically the P/E ratio is undefined. 25x revenue isn't unheard of, though. It's not that odd either if you figure out what angle the acquirer is betting on. Often it involves a mix of: - opportunity to easily cross-sell to a new swath of the market - continuing to grow the acquired business - realize economies of scale that the acquired business were working towards
• newsoul2019 7y ago
  You'd be surprised how often acquisitions boil down to former frat buddies on the golf course
• parakeet9 7y ago
  Per Pluralsight's earning's call yesterday [1]: "Pluralsight will acquire GitPrime for a total purchase price of $170 million to be paid in cash. This amount represents a multiple of approximately 5 times to 6 times expected 2020 billings." That puts 2020 projected revenue at $28-34 million. During the Q&A portion of the call, Pluralsight's CEO mentioned that "they [GitPrime] only have a few hundred customers". [1] https://finance.yahoo.com/news/pluralsight-inc-ps-q1-2019-014945006.html https://finance.yahoo.com/news/pluralsight-inc-ps-q1-2019-01...