An Austin-based cloud cost management company has been acquired in what investors are calling one of the largest venture-backed software exits in the city’s history, marking a significant win for the Texas technology sector.
Flexera, a global leader in technology spend and risk intelligence, announced Monday it has acquired ProsperOps, an AI-enabled platform that automates cloud computing cost optimization. The company also acquired Chaos Genius, which specializes in cost management for data cloud platforms.
Financial terms of the deals were not disclosed, but Pat Matthews, head of Active Capital, which made a pre-seed investment in ProsperOps, said the acquisition is “likely a top 20 Austin venture-backed software exit of all time.” Part of the ProsperOps team is also based in San Antonio, making it “the most meaningful venture-backed outcome to touch San Antonio since Rackspace,” Matthews wrote on a LinkedIn post.
The deal stands out in Austin’s venture landscape because ProsperOps built its business primarily through customer revenue rather than multiple rounds of venture capital funding after Active Capital’s initial investment.
“Austin just had one of its biggest venture-backed exits ever. Yet almost nobody in Austin has heard of the company,” Matthews wrote. “They focused on building a great business fueled by customers and revenue. And it worked.”
ProsperOps manages more than $6 billion in annual cloud usage and has grown by over 90% in recent months, according to Flexera. The company automates cloud commitment management across Amazon Web Services, Microsoft Azure, and Google Cloud.
“As enterprises adopt AI across their infrastructure, the need for intelligent, automated execution has never been greater,” Flexera CEO Jim Ryan said in a statement.
ProsperOps CEO and co-founder Chris Cochran said customers increasingly want unified platforms for cloud cost management rather than point solutions.
Chaos Genius addresses cost management for Snowflake and Databricks platforms and has helped Fortune 500 companies reduce costs up to 30%, according to Flexera.
ProsperOps will continue operating under its own brand while integrating complementary Flexera features.