Freshworks buys Torii to track software and AI spend
What's the deal? Freshworks (NASDAQ: FRSH) has signed a definitive agreement to acquire Torii, a software management platform, extending its Freshservice product into software and AI spend governance. Terms were not disclosed. The deal is expected to close in Freshworks' fourth fiscal quarter of 2026, subject to customary closing conditions.
Who's who? Freshworks sells a unified service operations platform used by BridgestoneDealroom has a profile for this one. Try Dealroom →, New BalanceDealroom has a profile for this one. Try Dealroom →, and Sony MusicDealroom has a profile for this one. Try Dealroom →. Founded in 2017, Torii tracks SaaS and AI activity — applications, licenses, users, and spend — and counts HearstDealroom has a profile for this one. Try Dealroom →, Groupon, and KochDealroom has a profile for this one. Try Dealroom → among its customers.
Why now? The spread of SaaS and AI tools has left IT with only partial visibility into what runs across an organisation. AI's consumption-based pricing adds a cost model most finance systems were never built to track, raising both spend and security risks.
What's the endgame? Freshworks wants to combine Freshservice and Torii so IT can see every application, license, and identity in one place, alongside what each costs. Torii tracks AI consumption to the token, attributes it to teams, and forecasts usage, letting IT set limits and catch spikes early.
"As AI moves from experiment to infrastructure, Freshservice is how modern IT can govern it at scale," said Dennis Woodside, chief executive officer and president of Freshworks.
Torii was recently named a Leader in the 2026 Gartner Magic Quadrant for SaaS Management Platforms. "Most CIOs still can't see it, let alone control it," said Uri Haramati, chief executive officer of Torii, of AI and the software behind it.
The signal: As AI shifts from pilot projects to core infrastructure, visibility into who uses which tools — and what they cost — is becoming a governance problem for IT and finance alike. The deal reflects a consolidation of IT service management and spend tracking into a single system of record.
Read more: AP News
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