Dropbox buys start-up CloudOn as acquisition phase continues

21 Jan 2015

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Cloud-storage giant Dropbox has just bought another start-up, with the Israeli mobile productivity app provider CloudOn the latest to join the fold.

The purchase adds to Dropbox’s acquisition strategy in recent years, with the company snapping up the likes of Audiogalaxy, PiCloud, Loom, and Snapjoy in the recent past.

CloudOn has more than 9m registered users but its services will cease on 15 March, and the company is no longer accepting new users.

“We’re thrilled to continue building things that help people work better – and we’re proud and excited to join the Dropbox team to help people be more productive every day,” said CloudOn in a statement.

CloudOn has more than 30 employees who will join Dropbox and the Israeli office will become a base for the company’s “aggressive hiring” in the region, reports The Wall Street Journal.

Financial terms of the deal have not been disclosed.

Last year, Dropbox raised significant funds to help with its acquisition plans, with growth in the company coming at an impressive rate.

In raising US$350m at the time, its valuation reached US$10bn, with The Wall Street Journal reporting the cash-rich company was looking to snap up start-ups around the world.

At the 2013 Web Summit in Dublin, Dropbox CEO Drew Houston said, “Even when we raised US$250m we haven’t spent it – we were already profitable. We don’t need capital so we have the flexibility. It certainly helps in terms of currency and makes it easier to acquire companies.”

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Gordon Hunt is a journalist at Siliconrepublic.com

editorial@siliconrepublic.com