Rally Software Buys Agile Advantage To Prove Agile Development Really Works

Today agile software project management Rally Software announced that it will acquire its longtime partner Agile Advantage. Terms of the deal were not disclosed. Agile Advantage makes that helps organizations track the return on investment of agile software methodologies. Features from the company’s Performer product will be integrated into Rally’s existing Portfolio Manager tool.

Rally CEO Tim Miller says his company has partnered with Agile Advantage on some of its larger accounts. “We’ve been in close collaboration with them in building their product, so it was a natural step for us to bring them in house,” he says. Rally also worked with Agile Advantage founders Brent Barton and Chris Sterling at their previous company SolutionsIQ, an agile consulting firm.

Barton and Sterling founded Agile Advantage about three years ago in Seattle, WA and was it “essentially bootstrapped” according to Miller. Rally, founded in 2002 in Boulder, CO, has taken a few rounds of funding — mostly recently a $20 million series D round led by Meritech Capital Partners. This is the company’s first acquisition since it acquired AgileZen in 2010.

Miller says that Agile Advantage will remain in Seattle and build a larger team there. “It’s three people now and we’ll see that grow to around 10 people to be an autonomous team in Seattle,” he says.

Rally Software is used by companies such as Level 3 Communications and CitySearch. Company representatives declined to disclose any of Agile Advantage’s customers.

Rally’s competitors include Atlassian, CollabNet and Serena Software