DigitalOcean Holdings Inc (NYSE:DOCN) has acquired Paperspace for $111 million in cash.
Paperspace offers cloud infrastructure as a service for highly scalable applications leveraging graphics processing units (GPUs).
With the acquisition and integration of Paperspace, DOCN will boost its offerings aiding customers to smoothly test, create and deploy artificial intelligence and machine learning (AI/ML) applications.
Also, the buyout will expand DigitalOcean’s serviceable market and presents cross-sell and upsell opportunities for both companies.
DOCN expects the acquisition to have an immaterial impact on 2023 results.
“Paperspace is a rapidly growing business with leading edge technology that significantly accelerates our AI/ML capabilities. We expect it to enhance our revenue growth in 2024 and beyond and we will invest commensurately to further accelerate its growth and take full advantage of this tremendous emerging market opportunity,” said Matt Steinfort, CFO.
DOCN held cash and equivalents of $613 million as of March 31, 2023.
In its Q2 2023 earnings call on August 3, 2023, DigitalOcean will share more details on the strategic benefits of the acquisition and update its financial outlook for 2023.
Price Action: DOCN shares closed higher by 0.56% at $39.77 on Wednesday.
