Azul, the only company 100% focused on Java, has acquired Payara, a global provider of enterprise-grade solutions for Jakarta EE (Java EE)-based applications and microservices for hybrid and cloud-native deployments.
What are the implications for enterprise Java solutions?
The combination of Azul and Payara addresses some of the most pressing challenges enterprises face today: accelerating application modernization, achieving cloud-native agility, and reducing dependencies on proprietary platforms.
The integrated offering provides customers with a unified, enterprise-grade Java platform based on open-source that can support an organization’s entire Java fleet – from business-critical applications to IoT, microservices and modern Java frameworks.
Complementary Products and Expertise
This acquisition marks a pivotal moment in enterprise Java innovation and builds on nearly eight years of collaboration between Azul and Payara, which began with the introduction of Azul Platform Core embedded into Payara Server Enterprise in 2018.
Payara adds deep engineering expertise and proven go-to-market experience in the Jakarta EE (Java EE) space, strengthening Azul’s Java platform with complementary products and enhanced market reach.
With this acquisition, Azul now provides commercially supported, open-source solutions across the Java application stack, delivering faster, more efficient, secure and cost-effective Java deployments compared to proprietary alternatives such as Oracle.
In addition to their complementary technologies, both companies share a deep history working with and participating in open-source communities, including the OpenJDK and Eclipse Jakarta EE Platform projects.
Driving Innovation and Value for Enterprise Java Customers
“This strategic acquisition is further testament to Azul’s commitment to support the needs of our global enterprise customer base,” said Scott Sellers, co-founder and CEO of Azul. “Payara delivers proven products that are naturally synergistic with our existing offerings and brings additional deep technical expertise to the world’s largest independent Java engineering team. Together, we will accelerate growth and innovation, expand our roadmap and deliver even greater value to our customers.”
“This is a major new chapter for Payara,” said Steve Millidge, founder and CEO at Payara. “After a strong and long-standing partnership with Azul, combining forces is the natural next step and positions us for accelerated growth. Together, we will strengthen mission-critical solutions for enterprise Java customers and deliver greater performance, security and innovation across the Java ecosystem.”
Adding Payara’s solutions to Azul’s Java portfolio expands its offerings in the application server segment and adds an estimated $26 billion total addressable market (TAM) projected to grow at a CAGR of 11–14%.
This announcement follows Azul’s recently completed majority investment from Thoma Bravo, a leading software investment firm, alongside renewed minority investments from the company’s existing private equity sponsors, Vitruvian Partners and Lead Edge Capital.
“The acquisition of Payara accelerates Azul’s growth and broadens the company’s reach across the global enterprise Java market,” said Adam Solomon, a partner at Thoma Bravo. “Azul’s category-defining innovations create a significant opportunity for global enterprises to leverage innovative and cost-effective open-source solutions to modernize their Java application fleets and reduce dependencies on proprietary platforms.”
Goodwin Procter LLP served as legal advisor and debt financing for the transaction was provided by funds affiliated with Ares Management LLC.
