Commit fd8ccfdb authored by Paul Machle's avatar Paul Machle

Merge branch 'acq-hb-1.2' into 'master'

Updates to Acquisitions Handbook

See merge request !22683
parents 845032b7 c2fd1eb1
Pipeline #62727483 passed with stages
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......@@ -9,6 +9,9 @@ title: "Acquisition Process"
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This is a detailed view of our acquisition process. For more information about
our acquisitions approach visit our [acquisitions handbook](/handbook/acquisitions).
## Acquisition process
The process is comprised of three key stages:
1. Exploratory
......
......@@ -17,6 +17,8 @@ Below are a set of criteria and considerations to take into account as you think
By order of priority (high to low):
1. Hire great talent with domain expertise, with a focus on founders
1. Introduce new product features to GitLab faster than building them ourselves
Possible benefits:
1. Strengthen our value prop in product categories with high growth and where profits will turn up in the future
1. Influence market perception and create a PR opportunity
1. Win new customers and gain penetration to key accounts
......@@ -27,7 +29,10 @@ Below is a set of general criteria the GitLab acquisition team will work accordi
1. Raised under $10M total investment funds, last round being over 3 years ago
1. Team size under 20 people in Europe, 40 people in MEA & Asia
1. Last YOY growth is low double digits or less, preferably under 30%
1. Must add features or functionalities to GitLab which are on our [roadmap](https://about.gitlab.com/direction)
1. Must add features or functionalities to GitLab which are on our
[roadmap](https://about.gitlab.com/direction)
1. Ideally bring a solution which accelerates our maturity in the product category
according to our [category maturity](https://about.gitlab.com/handbook/product/categories/maturity/)
1. Built a great product but is missing distribution
1. Willing to [reimplement products into GitLab](https://about.gitlab.com/handbook/product/single-application) in Ruby and Go
1. Willing to sunset old customers within 90 days or less with an option to transition to GitLab. GitLab follows an [open-core model](https://about.gitlab.com/install/ce-or-ee)
......@@ -49,13 +54,15 @@ leading product and a fascinating culture.
## What we offer
1. We will consider paying back preferred shareholders **up to** $1M.
1. We believe talent follows leadership they trust: we offer cash bonus for founders to help in the transition and conditional on employee interviews and offer acceptance
1. Each founder with more than 10% ownership of the company will receive $250,000 paid as follows: $50,000 on closing and $200,000 as a retention bonus
1. Each engineer will receive $60,000 paid as follows: $12,000 on closing and $48,000 as a retention bonus
1. Triple our normal stock grants for founders
1. Normal cash and stock offers for non-founders
1. Cash bonus on achieving milestones for customer transition to paid GitLab agreements, where relevant
1. Founders can become distinguished engineers over time
## What happens to your current company?
1. We follow an asset purchase and not a stock purchase in order to limit unexpected liabilities
1. We follow an **asset purchase** and not a stock purchase in order to limit unexpected liabilities
1. We want to ensure a graceful shutdown - we will pay to shut down the entity including paying outstanding bills up to 2 times the estimated amount.
## Post acquisition
......@@ -67,15 +74,14 @@ leading product and a fascinating culture.
**Philippe Lafoucrière**, "When GitHub announced they would provide a Security graph and alerts, we knew we would not be able to compete with them. That meant the end of the story for us and our product. It was time to find a new home for the team. We started discussions with GitLab in November 2017 and officially joined the company in mid-January 2018. The whole process was seamless, with a particular care for the team. Expectations from both sides were discussed, with mutual respect and understanding.
The founders made themselves available for us at anytime, and we had regular meetings for several months until we all estimated the situation stable enough. Onboarding a whole team at once is a challenge: the peopleops team did everything they could to help and to make them feel comfortable with their new positions. They were happy to continue on the foundations we’ve built over the years while being able to contribute to a greater goal. We managed to identify with the management where we could have the best impact, and provide results as soon as possible.
I don’t see anything GitLab could have done differently to make this acquisition smoother. The most important value to follow in this kind of event is Trust (because you can only lose it once). GitLab, and especially its CEO, was incredibly clear and respectful during all the process and beyond."
**[Gemnasium: Our GitLab journey](https://about.gitlab.com/2019/04/30/gemnasium-our-gitlab-journey/)**
## Starting an acquisition discussion with GitLab
If you're interested in starting an acquisition discussion with us send an an email with to [Eliran Mesika](mailto:eliran@gitlab.com), our Director of Partnerships, to connect and start the process.
## Acquisition process
Learn more about our internal [acquisition process](/handbook/acquisitions/acquisition-process) and
how you can prepare for an efficient process.
Learn more about our internal [acquisition process](/handbook/acquisitions/acquisition-process) and how you can prepare for an efficient process.
## Contact us
For additional information contact [Eliran Mesika](mailto:eliran@gitlab.com), Director of Partnerships.
---
layout: markdown_page
title: "Acquisition Offer"
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## On this page
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This page has been deprecated, please refer to our [acquisitions handbook](/handbook/acquisitions) for information on acquisitions.
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