I’ve met with two of the founders of Cloudon — Milind Gadekar and Jay Zaveri –several times in 2014, and I was unsurprised to learn that Dropbox had stepped forward to acquire the company this week. Cloudon’s newest effort — a tablet document editor that incorporated a novel and intuitive gestural interface (see CloudOn rolls out mobile Microsoft Word compatible co-editor) — is a really ambitious push to challenge Microsoft, and I’m betting that is soon going to be integrated into Dropbox in a smart way.
The two companies declined to state what the deal was, but they have announced that the existing Cloudon products will be shut down on March 15 (Cloudon also has a virtual Office app for iPad: see CloudOn brings Microsoft Office to iPad, but it doesn’t work on my Mac).
Cloudon raised $26 million from a crowd of investors, including The Social+Capital Partnership, TransLink Capital, Foundation Capital and Rembrandt Venture Partners. I’m betting something over $100 million, at least. The company has more than 9 million users, and offices in Israel, San Francisco, Seattle, New York and Dublin, Ireland.
Cloudon’s 30 employees represents the largest single acquisition for Dropbox, and the Israel office will become a center for aggressive hiring for Dropbox, according to reports.