VWO and AB Tasty Merge Under Everstone Capital

Word’s been circulating for a while now that VWO (backed by Everstone Capital) was preparing to merge with its rival, AB Tasty.

Today, it’s official. 

According to Mint, Everstone Capital is in the process of merging Wingify (VWO) with AB Tasty, after investing a significant chunk of capital to buy out a large portion of AB Tasty’s existing investors and clean up its cap table.

The combined entity will have over $100 million in ARR and serve 4,000+ customers globally (with roughly 90% of revenue from the US and Europe). The deal is reportedly valued in the $400-500 million range.

This is the loudest signal yet of a massive consolidation wave barreling through the CRO and experimentation space.

What was once a fragmented market of specialized A/B testing tools is coalescing into a consolidated ecosystem of enterprise-grade platforms. 

Breaking Down the Deal

Here’s what we can piece together from the available data:

• Combined ARR: $100M+ (VWO ~$60M + AB Tasty ~$40M)
• New Everstone capital: ~$100M, used primarily to buy out AB Tasty’s investors
• Combined valuation (estimated): $400–500M range at a 4–5x ARR multiple
• Customer base: 4,000+ total (VWO’s 3,000+ plus AB Tasty’s 1,000+)
• Headcount: ~800 across 11 offices, HQ in New Delhi

With this move, VWO adds features like AB Tasty’s AI Emotions and AB Tasty’s Evi (something they now have in basic form with Copilot) to its arsenal, ticking the product innovation checkbox of its acquisition mandate. 

Why it makes sense: VWO’s company co-founder and chief executive Sparsh Gupta told Mint in a recent interview: 

“Now that we’re a part of Everstone, we have far more access to think and build an inorganic growth pipeline for ourselves. There’s definitely a pipeline of businesses that we’re talking to right now.” 

The total addressable market for web experimentation is pretty much tapped. Acquiring new customers in 2026 is expensive and slow. 

In the same interview, VWO’s CEO Gupta shared insights into these market pressures, noting that while the company has grown at a compound annual growth rate (CAGR) of 25–30%, the cost of that momentum is climbing. In 2025, the company’s profit dropped 61% to approximately $2.7 million USD. While VWO’s revenue saw an increase to $42.8 million USD in 2025 (up from $32.0 million the year prior), and an ARR of more than $60 million (according to a recent CNBC interview), total expenses shot up to about $41.7 million compared to just $24.5 million in 2024 due to increased labor costs. 

For a PE firm like Everstone, with growth expectations to meet, merging VWO with a major competitor like AB Tasty is the fastest way to a revenue number that looks good, matched with the desire to go “upmarket” when it’s time to bring the company to an exit or IPO.

The M&A Scorecard: Who Bought Whom

VWO’s move isn’t an outlier. The last few years have seen a flurry of activity as both strategic tech giants and private equity firms snap up key players in the experimentation space. Here’s who ended up where:

Why the Sudden Rush to Consolidate?

The website-focused A/B testing market (estimated at roughly $1 billion) is maturing, with growth slowing to approximately 10%. 

Ryan Lucht, who went through the Eppo Datadog acquisition from the inside, sees two parallel trends driving this wave:

1. The Private Equity “Roll-Up” Play

Private equity firms are targeting cashflow-positive, “web-only” testing tools. These PE firms, such as Everstone Capital (VWO) and Centre Lane Partners (Monetate), aim to bundle smaller companies together to boost total revenue before IPO or exiting, ideally to a larger strategic buyer, within a 2- to 5-year window (the typical PE play).

2. The Rise of “Experimentation Everywhere”

Meanwhile, the people buying these tools have changed too. B2B buying journeys have gotten more unpredictable and non linear. Today’s buyer shows up to a website having already interrogated LLMs, skimmed third-party reviews, and comparison-shopped pricing. 

Selling into this requires a different kind of experimentation tooling. To convert this new buyer, brands need full-stack experimentation. The web-only model reads as table stakes now. Experimentation platforms are growing by colonizing adjacent territory, like product analytics, DevOps, observability. Companies like Datadog and Amplitude recognize that experimentation is the “connective tissue” that makes product analytics and DevOps actionable. In this new world, buying a product analytics platform that doesn’t offer experimentation will soon seem “ridiculous”.

A Different Bet

When platforms consolidate and move upmarket, someone gets left behind. The very agencies and businesses that built the A/B testing space in the first place find themselves priced out or forced onto bloated enterprise platforms they don’t need.

Convert will keep serving mid-market agencies and businesses between $1M and $10M in revenue and isn’t tempted to go upmarket—serving thousands of websites without change and without price increases. We expect to be the safe harbor for businesses forced to upgrade eventually.

Where This Is Heading

The CRO or experimentation industry has outgrown its origins. It is now being absorbed into larger categories: AI, Observability, and Digital Experience Platforms (DXPs), because experimentation has become a full stack permanent fixture for any brand that wants to survive the “messy” modern buying journey.