Nasdaq-listed SaaS firm Freshworks has signed a definitive settlement to accumulate Torii, a SaaS administration platform, because it seeks to increase its IT service administration providing into AI and software program expenditure administration.

The acquisition, introduced on 12 October, is anticipated to shut in Freshworks’ fourth fiscal quarter of 2026, topic to customary closing situations.

Monetary phrases of the deal haven’t been disclosed.

The proposed acquisition will prolong the capabilities of Freshworks’ IT service administration platform, Freshservice, permitting companies to watch software program functions, licences, person entry and AI-related expenditure by way of a unified system.

The transfer comes as companies more and more undertake SaaS functions and AI instruments, making it tougher for IT and finance groups to trace know-how utilization, handle prices and determine potential safety dangers.

AI companies that cost in accordance with consumption have added one other layer of complexity, as expenditure can fluctuate relying on utilization.

How Torii will strengthen Freshservice

Based in 2017 by Uri Haramati, Uri Nativ and Tal Bereznitskey, Torii supplies software program administration instruments that assist enterprises monitor functions, licences, customers and expenditure.

The platform permits organisations to determine software program used throughout departments, observe spending and automate processes associated to worker entry, licence administration and contract renewals.

Torii additionally gives AI expenditure administration capabilities, together with monitoring consumption on the token degree, a unit used to measure the textual content processed by AI fashions.

Its know-how can attribute AI utilization to staff and groups, forecast future expenditure and assist companies set up spending limits. These options are designed to determine surprising will increase in consumption earlier than they result in larger prices.

Freshworks expects the mix to offer IT and finance groups a shared view of software program and AI utilization, serving to them determine pointless expenditure and scale back reliance on handbook reporting.

The corporate additionally expects the mixing to enhance oversight of safety and information dangers related to functions and AI instruments working outdoors formal IT approval processes.

“Trendy IT groups are being requested to manipulate extra of the enterprise than ever, with much less visibility into what it prices,” mentioned Dennis Woodside, CEO and President of Freshworks.

Woodside mentioned combining the 2 platforms would enable IT and finance groups to make choices utilizing frequent details about functions, customers and spending, quite than counting on separate data.

Torii was named a Chief within the 2026 Gartner Magic Quadrant for SaaS Administration Platforms. Its prospects embrace Hearst Company, Groupon and Koch, Inc.

Uri Haramati, CEO of Torii, mentioned IT, finance and safety groups had typically relied on incomplete details about the identical software program administration challenges. He mentioned the proposed mixture will assist deal with these gaps by bringing software program and AI expenditure information into Freshservice.

Torii mentioned it should proceed working independently till the transaction closes. Its present buyer companies, integrations, workflows and renewal preparations will stay unchanged throughout that interval.

Freshworks’ rising deal with AI

Based in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy in Chennai, Freshworks supplies cloud-based software program for buyer and worker service, gross sales and IT administration.

The corporate, now headquartered in San Mateo, California, has expanded its AI-powered product choices beneath Woodside, who grew to become CEO in Might 2024.

Its product developments embrace AI brokers and workflow automation instruments designed to assist companies automate buyer assist, IT operations and different service-related processes.

In Might 2026, Freshworks introduced a restructuring plan affecting roughly 500 staff, representing round 11% of its world workforce.

In a regulatory submitting, the corporate mentioned the plan was supposed to streamline its organisation and product growth processes whereas rising the usage of AI and automation throughout the enterprise.

Freshworks’ monetary efficiency

The proposed acquisition follows an enchancment in Freshworks’ monetary efficiency.

For the quarter ended 30 June 2026, the corporate reported a web revenue of $3.2 million beneath usually accepted accounting ideas (GAAP), in contrast with a web lack of $1.7 million within the corresponding quarter a 12 months earlier and a web lack of $4.8 million within the previous quarter.

Income elevated 16% year-on-year to $237.4 million, from $204.7 million in the identical interval of 2025.

Freshworks additionally highlighted the adoption of its AI choices, reporting that its Freddy AI Copilot product was connected to greater than 71% of latest enterprise offers through the quarter.

The proposed acquisition will add devoted software program and AI expenditure administration capabilities to Freshservice, additional increasing Freshworks’ enterprise software program providing.

Neither firm has introduced a selected timeline for integrating Torii’s capabilities into Freshservice. Torii has mentioned additional particulars in regards to the mixed product plans can be shared after the acquisition closes.