Netreo Expands IT Management Capability With Stackify Buy

Netreo, a Huntington Beach-based tech company specializing in IT management, has made its second acquisition within 10 months, bolstering the company’s ability to monitor and help fix enterprise networks.
 
The company on April 20 announced the acquisition of Stackify, a Leawood, Kan.-based developer of software used to monitor and fix faulty applications. Financial terms were undisclosed.
 
Netreo, which now boasts a combined global workforce of more than 100 employees, also acquired Chicago-based cloud infrastructure monitoring company CloudMonix in June 2020.
 
The company is seeing increased customer interest, as enterprise systems monitoring and troubleshooting have become increasingly important, especially with more people working from home during the pandemic.
 
Netreo is focused on monitoring the network, servers, routers and the internet, while Stackify specializes in creating software for monitoring an application’s performance, as well as detecting and resolving issues while programmers are writing applications.
 
“We help monitor the connectivity of the entire experience,” Netreo Chief Executive Jasmin Young told the Business Journal.
 
She gives the example of a Webex or a Microsoft Teams video call breaking up or freezing on the screen: Is it the internet, Wi-Fi or the application itself? 

Fixing Bugs 

“With Netreo, companies can quickly analyze where the breakdown is—and with Stackify, developers of applications such as Microsoft, can actually find out where the bug is in the software and fix it,” Young says.
 
She adds: “The addition of Stackify increases our capabilities to help developers of custom software actually fix problems as the application is written, so users don’t encounter problems. Next, Stackify provides even deeper insights into all applications in use, so issues can be pinpointed and solved before they impact any users.”  

The rise of digital transformation has shown the need for more monitoring and more comprehensive information related to why things are not working. “That’s become more and more pertinent.”  

Netreo can help sell Stackify’s software to business customers, while Stackify can help Netreo gain access to potential customers in the small- to mid-size range. The addition of Stackify’s capabilities increases the ability to serve the growing $30 billion-plus IT operations management software market.
 
Software Growth Partners 

Netreo is owned by San Carlos-based investment firm Software Growth Partners.  

The company’s employees are in the Philippines, U.K., India, Mexico, Brazil, Switzerland, and the U.S.
 
Young says the company has been experiencing double-digit growth, while it declines to release revenue figures.
 
It’s made the Inc. 5000 list for fast-growing companies, and last year reported three-year revenue growth of 77%.

The CEO says Netreo competes with SolarWinds, which received a huge setback from a hack that may have been Russia-backed, and LogicMonitor, while Stackify competes with firms such as New Relic, Datadog and Dynatrace.
 
Young joined Netreo as CEO in December 2019 to spur company growth after she had worked in executive roles at PriceWaterhouseCoopers for nine years.
 
Stackify founder and CEO Matt Watson has assumed the role of chief technology officer for Netreo.