MongoDB acquires mLab (ObjectLabs Corporation)

MongoDB acquired mLab (ObjectLabs Corporation) for $68.0 million in cash (purchase price per the merger agreement; $69.97 million total allocated after closing adjustments), a transaction completed in November 2018, structured as all cash.

mLab (ObjectLabs Corporation) operates in Cloud database / Database-as-a-Service, is based in San Francisco, California, USA. mLab, based in San Francisco, California, is a fully-managed cloud database service featuring automated provisioning and scaling, backup and recovery, 24/7 monitoring and alerting, web-based management tools, and support. At acquisition it hosted approximately one million databases across free and paid tiers, with particular traction among developer-centric startup communities served through a self-serve model.

MongoDB's acquisition of mLab was intended to deepen its relationships with developer-centric startup communities, a segment in which mLab had been very successful, and to bring self-serve database-service expertise into MongoDB Atlas.

Approximately one million hosted databases and a large developer-centric startup customer base addressable for migration to MongoDB Atlas. Migration of mLab's hosted-database customers onto MongoDB Atlas; addition of self-serve cloud-database operating expertise. MongoDB Atlas (cloud database service) MongoDB management, Q1 FY2020 earnings call (Jun 5, 2019): "As a reminder, our first quarter results include the impact of mLab, which we acquired in November 2018 and performed in line with our expectations. Excluding mLab, organic growth in the business remained very strong."

MongoDB represents a dramatic sea change in how application developers work with data. There is a trend towards building software systems via microservices and deploying those systems in the cloud. As this trend continues, we anticipate it will open enormous market opportunities for global cloud databases, and MongoDB will be well positioned to power these types of software systems in ways that other database technologies cannot.Will Shulman, CEO, mLab

mLab has been particularly successful focusing on developer-centric startup communities via a self-serve model. We're excited to bring that self-serve and database-service expertise to MongoDB and believe mLab is an efficient way to capture a large number of customers. We will shortly begin the process of moving mLab customers to Atlas.MongoDB management, Q3 FY2019 earnings call (Dec 4, 2018)

Advisory firms were not disclosed for this transaction.

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