Mutual Fund Giants Make DevOps Startup PagerDuty a Unicorn

(Bloomberg) -- Mutual fund giants T. Rowe Price Group Inc. and Wellington Management led a $90 million investment in PagerDuty Inc., making the rapid-response software startup a unicorn with a private valuation of more than $1 billion.

Existing investors Accel Partners, Andreessen Horowitz and Bessemer Venture Partners also participated in the round, San Francisco-based PagerDuty said on Thursday. The financing values the startup at $1.3 billion.

PagerDuty is in the digital operations management, or DevOps, market, which has seen a rash of deals this year, including Broadcom Inc.’s $19 billion takeover of CA Inc. and Atlassian Corp.’s acquisition of PagerDuty competitor OpsGenie Inc.

PagerDuty helps customers respond to website failures in real-time and predict impending outages. In April, Bloomberg reported the company was on track to generate more than $100 million in annual sales.

"We’re in the longest bull market in history, it can’t last forever," said PagerDuty Chief Executive Officer Jennifer Tejada. "I want to put the company in a position to live beyond me. This is as much an investment in longevity and building an enduring brand as operationally supporting our growth objectives."

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