Freshworks agrees to buy Torii to govern SaaS and AI spending
The Nasdaq-listed software company will fold Torii’s tracking of software licenses and token-level AI usage into Freshservice, its IT service desk product, in a deal whose price was not disclosed
- The acquisition is expected to close in Freshworks’ fourth fiscal quarter of 2026, subject to customary closing conditions
- Gartner named Torii a Leader in its 2026 Magic Quadrant for SaaS Management Platforms, the third consecutive year Torii has held that position
- Torii was founded in 2017 and is led by its co-founder and chief executive, Uri Haramati
The deal folds a standalone SaaS management tool into a service desk product, so mid-market firms that buy the two from separate suppliers may in future buy them from one. Torii customers have been told that their instances, integrations, workflows, support contacts, renewal terms and roadmap stay the same until the deal closes. Neither announcement addresses pricing or packaging after that point. Independent SaaS management vendors now compete with a product backed by a listed service desk supplier and its installed base of IT customers.
“Modern IT teams are being asked to govern more of the business than ever, with less visibility into what it costs.”Dennis Woodside, chief executive and president, Freshworks
Freshworks, a Nasdaq-listed software company based in San Mateo, California, has signed a definitive agreement to acquire Torii, which manages company spending on software-as-a-service (SaaS) and AI tools. The deal, announced on 12 October, extends Freshworks’ Freshservice IT service management product into software management and AI spend governance.
Torii tracks which applications employees use, who uses them and what the licenses cost. Its AI module records usage per token and per team and projects future consumption, which IT departments can use to charge costs back, cap usage and spot spikes early. Freshworks said companies including Hearst Corporation, Groupon and Koch already use Torii to govern their software and AI spend.
Torii, an Israeli startup, has raised $65m (£49m) in total, including a $50m (£38m) Series B led by Tiger Global Management in February 2022, Calcalist reported. The outlet said the deal is thought to be relatively small and that Freshworks has about 4,500 employees.
The purchase follows Freshworks’ acquisition of Device42, a maker of IT asset discovery software, which it completed in June 2024. In a blog post, Torii’s chief executive, Uri Haramati, said its software and AI governance would sit alongside Freshservice’s service desk, configuration management database and asset management tools.
Sources
- Freshworks, “Freshworks to Extend Freshservice into AI and Software Spend Governance with Agreement to Acquire Torii”, press release (GlobeNewswire), 12 October 2026. https://www.freshworks.com/pressrelease/freshworks-to-extend-freshservice-into-ai-and-software-spend-governance-with-agreement-to-acquire-torii/
- Freshworks, “Freshworks to Extend Freshservice into AI and Software Spend Governance with Agreement to Acquire Torii”, press release (GlobeNewswire, syndicated by Stock Titan), 12 October 2026. https://www.stocktitan.net/news/FRSH/freshworks-to-extend-freshservice-into-ai-and-software-spend-zhogvvn65mah.html
- Uri Haramati, “Torii Signs Agreement to Join Freshworks”, Torii blog, 12 October 2026. https://www.toriihq.com/blog/torii-freshworks-acquisition
- Calcalist (Meir Orbach), “Freshworks to acquire Israeli startup Torii to help companies control AI costs”, 12 October 2026. http://www.calcalistech.com/ctechnews/article/xnwfli0e6
- Freshworks, “Freshworks Completes Acquisition of Device42”, press release, 6 June 2024. https://www.freshworks.com/pressrelease/freshworks-completes-acquisition-of-device42/
