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Cloud app marketplace startup AppDirect has acquired leading open-source billing provider jBilling, the two companies announced Tuesday.

AppDirect hit our radar in July when it raised $8.5 million in its first round of funding and established a partnership to help Rackspace set up a marketplace for apps. Its platform has made it possible for many big-name companies such as Deutsche Telekom and Appcelerator to develop their own app stores. AppDirect has made progress since we last spoke to them, moving from 45 to 70 employees in a matter of months.

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With the acquisition of jBilling, AppDirect further advances its business by helping its clients who want better app store billing.


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“AppDirect has grown a footprint at providing web-based app stores, but we needed help with billing because it’s difficult to build that in-house,” AppDirect CEO Daniel Saks told us. “There’s also a great overlap of customers who use jBilling and AppDirect, so there’s potential there.”

jBilling’s platform attracts 500 downloads a week, a relatively high number for a billing product, claims Saks. AppDirect will use jBilling to help it create new billing products.

jBilling will remain a stand-alone entity and will still serve current customers, including Constant Contact, Vidtel, SageSpark, Stream The World, and Alsatis. jBilling founder Emiliano Conde will stay on as president of jBilling.

San Francisco-based AppDirect was founded in mid-2009. It has raised $12.75 million total, including seed funds.

Photo via jBilling

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