Freshworks (NASDAQ: FRSH) has agreed to acquire Torii, whose software tracks the SaaS applications and AI tools a company pays for, to extend its Freshservice IT service desk into software and AI spend governance. Neither company disclosed a price. The agreement was signed October 12, and Freshworks expects the deal to close in its fourth fiscal quarter of 2026, which ends December 31, subject to customary closing conditions.
Torii is the second of three IT-operations deals Freshworks has struck in ten months. It closed its purchase of FireHydrant, an incident management company, on January 1, and on October 28 said it had acquired Robusta Dev, which uses AI to investigate outages. Of the three, only FireHydrant's price is public: $88.7 million in cash, disclosed in a quarterly filing rather than in the announcement.
Why Freshworks wants Torii
Torii, founded in 2017, sells a platform that shows which applications and AI projects a company runs, what they cost, who uses them and who owns them. Freshworks' release names Hearst Corporation, Groupon and Koch among its customers, and says Torii was named a Leader in Gartner's 2026 Magic Quadrant for SaaS Management Platforms. Freshworks' pitch is that finance and IT stop reconciling separate spreadsheets about the same spending.
Dennis Woodside, Freshworks' CEO and president, said in the release that "modern IT teams are being asked to govern more of the business than ever, with less visibility into what it costs," and tied the deal to AI's move into everyday operations.
As AI moves from experiment to infrastructure, Freshservice is how modern IT can govern it at scale.Dennis Woodside, CEO and president of Freshworks, October 12, 2026
Uri Haramati, Torii's co-founder and CEO, said that "most CIOs still can't see" the AI and software their teams use, and that folding Torii into Freshservice "means one less blind spot, not one more dashboard."
What happens to Torii customers
Until the deal closes, nothing changes, according to Torii. In Haramati's announcement on Torii's blog, the company said the two will "continue to operate as two separate, independent companies, and nothing changes for our customers today," and listed customers' instances, integrations, workflows, support contacts and renewal terms as staying as they are. It said its roadmap "has not changed" and that it will say more about what the two are building once the deal closes. After that, Torii said, its governance tools "will sit next to the service desk, the CMDB, and the asset management" that Freshservice customers use.
Torii's website already presents it as "Torii, a Freshworks company" in its header logo, as of 8:20 a.m. ET on October 30. Neither company had announced that the deal had closed by then.
Torii raised a $10 million Series A led by Wing Venture Capital in February 2021 and a $50 million Series B led by Tiger Global Management in February 2022, and has raised $65 million in total, seed funding included, according to its own company page.
Three deals in ten months
Deal | Announced | Price |
|---|---|---|
FireHydrant, closed Jan. 1 | Dec. 2025 | $88.7M |
Torii, pending | Oct. 12 | Not given |
Robusta Dev, acquired | Oct. 28 | Not given |
Source: Freshworks' announcements and its 10-Q for the quarter ended June 30, 2026.
FireHydrant came first. Freshworks signed the agreement on December 15, 2025 and, by its 10-Q for the second quarter, bought all of FireHydrant's shares on January 1, 2026 "for $88.7 million in cash, including $4.3 million of cash acquired, to expand its IT service and operations portfolio." Constellation Research wrote at the time that the deal let Freshworks compete better with ServiceNow and PagerDuty.
Robusta followed Torii by 16 days. Freshworks said on October 28 that it had acquired Robusta Dev Ltd., whose software investigates technology disruptions, finds root causes and recommends fixes, and that the product will be built into Freshservice workflows and work with FireHydrant. Freshworks welcomed Robusta co-founder and CEO Natan Yellin, Arik Alon and the Robusta team. The company's post on X that day put the reason in one line.
Outages are expensive, and the longer it takes to find the cause, the more they cost.Freshworks, on X, October 28, 2026
What it means for Freshservice buyers
Taken together, the three deals add three jobs around the service desk: FireHydrant for running an incident, Robusta for finding its cause, and Torii for seeing what the company spends on software and AI. For a Freshservice customer, the practical question is how quickly those pieces arrive inside the product they already pay for. Freshworks has said Robusta will feed Freshservice and FireHydrant; for Torii, the company has said only that it will share more once the deal closes.
The one price on record is small against Freshworks' balance sheet. FireHydrant's $88.7 million was 13.4% of the $664.1 million in cash, cash equivalents and marketable securities Freshworks held on June 30, 2026, by SaasBuzz's calculation from the 10-Q. Freshworks had filed no Form 8-K current report for either the Torii agreement or the Robusta purchase by October 30, and its announcements of both leave out the price.
Freshworks reports its third-quarter results after the market closes on November 3, with a webcast at 5:00 p.m. ET. ServiceNow, which Constellation named as a rival, reported its own third-quarter results on October 28.
