Freshworks Acquires FireHydrant to Build AI‑Native ServiceOps Platform

Freshworks has signed a definitive agreement to acquire FireHydrant, an AI-powered incident management platform, with the deal expected to close in its first fiscal quarter of 2026.

The acquisition will merge Freshworks’ IT Service Management (ITSM) capabilities with FireHydrant’s IT Operations Management (ITOM) expertise to create a unified AI-native ServiceOps solution.

Key Highlights of the Acquisition

• Announcement Date: December 15, 2025
• Closing Timeline: Expected in Freshworks’ first fiscal quarter of 2026 (around March 2026), subject to customary closing conditions
• Strategic Goal: Deliver a unified AI-native ServiceOps platform that simplifies IT operations, proactively prevents disruptions, and ensures service reliability
• Technology Integration:
  • FireHydrant’s AI-powered incident context summarization and structured response workflows
  • Freshworks’ Freshservice ITSM platform for service management
• Customer Base: FireHydrant, founded in 2018 by Robert Ross and Dylan Nielsen, serves major enterprises including Palo Alto Networks, BP, and Qlik

Strategic Impact

• Service Reliability: Combining ITSM and ITOM to reduce downtime and improve resilience
• AI-Native Approach: FireHydrant’s AI stack enhances automation in incident response
• Market Positioning: Strengthens Freshworks’ competitiveness against larger SaaS rivals
• Financial Context: Freshworks reported a 15.3% YoY revenue increase to $215.1M in Q3 2025, while cutting net losses by 84.4% to $4.7M

Risks & Considerations

• Integration Challenges: Merging ITSM and ITOM platforms requires seamless technical alignment
• Undisclosed Deal Value: Financial terms remain confidential
• Competitive Landscape: Larger players like ServiceNow and Atlassian dominate IT service/incident management

Bottom Line

Freshworks’ acquisition of FireHydrant is a strategic bet on AI-driven ServiceOps, aiming to unify IT service and operations management into a single platform.

If integration succeeds, it could significantly boost Freshworks’ reliability offerings and strengthen its position in the enterprise SaaS market.