Valori - Comprehensive Analysis Report
Summary
Valori, founded in 1989 and based in Utrecht, Netherlands, is the largest independent specialist in Quality Assurance (QA) and software testing in the Netherlands, with over 200 consultants. The company's core mission, "Building IT Quality," emphasizes fostering carefree innovation through integral quality in IT systems, crucial in a technology-dependent world. Valori plays a significant role in digital transformation by ensuring the quality and reliability of IT systems, offering independent advice and pragmatic approaches to help organizations manage risks, enhance operational efficiency, and drive growth through high-quality software. Valori was acquired by Cerios on April 4, 2023, signaling a new phase of growth and integrated service offerings within a larger group focused on IT quality services.
1. Strategic Focus & Objectives
Core Objectives
Valori's core objectives revolve around delivering comprehensive IT quality services. The company aims to help clients build, automate, and optimize their Quality Assurance processes to maximize software value. The "Building IT Quality" approach ensures software is functional, reliable, durable, and secure, capable of scaling with organizational success.
Specialization Areas
Valori specializes in several key areas:
- QA Advisory: Providing services such as QA Strategy, Quality Assessment (including software due diligence), and QA Transformation, guiding organizations in modern and automated software quality testing.
- Low-code Testing: Expertise in testing applications built on low-code platforms like OutSystems, Pega, and Salesforce, utilizing a "Core Layer Testing" approach for efficient QA.
- Continuous Testing: Implementing test automation, mobile app testing, and performance testing to accelerate release cycles and continuously monitor software quality.
- Result-driven Maintenance: Developing methodologies for continuous improvement in maintenance work, based on propositions like Functional Management (aligned with BiSL) and Product Support & Maintenance in Agile environments.
Target Markets
Valori targets diverse sectors, including financial services, government, telecoms, insurance, and utilities. The company supports clients in reducing technical debt, increasing development speed, and lowering costs associated with poor software quality.
2. Financial Overview
Funding History
Valori was acquired by Cerios on April 4, 2023. This acquisition involved Avedon Capital Partners taking over the investment role from Holland Capital. Holland Capital had been an active shareholder in Valori since 2019, supporting its management in strategic development, including a buy-and-build strategy.
One significant acquisition in Valori's expansion strategy was taking a majority stake in Omnext, a leading international player in software code analysis, on July 7, 2021. This move was intended to create a unique end-to-end quality solution by combining Valori's QA and testing expertise with Omnext's software code analysis capabilities. Revenue information for Valori is not publicly available.
3. Product Pipeline
Key Products/Services
- QA Advisory: Services include QA Strategy, Quality Assessment (including software due diligence), and QA Transformation. These services guide organizations in modern and automated software quality testing, addressing challenges from initial strategy to full implementation.
- Low-code Testing: Specialized testing for applications built on platforms such as OutSystems, Pega, and Salesforce. This service utilizes the "Core Layer Testing" approach for efficient and effective quality assurance, integrating into CI/CD pipelines for daily feedback and reduced test script maintenance.
- Continuous Testing: Encompasses test automation, mobile app testing, and performance testing to accelerate release cycles and continuously monitor software quality. This ensures rapid feedback and improved software stability.
- Result-driven Maintenance: Develops methodologies for continuous improvement in maintenance work, based on propositions like Functional Management (aligned with BiSL) and Product Support & Maintenance in Agile environments, ensuring long-term software health.
4. Technology & Innovation
Technology Stack
Valori leverages a combination of proprietary technologies and established methodologies:
- Omnext Fit Test Platform: Acquired through Omnext, this platform performs automated software code analysis. It benchmarks source code against industry best practices and ISO-25010 guidelines, providing real-time, objective insights into the quality and technical risks of applications across over 40 technologies, including low-code platforms.
- JOSF (Low-code Test Automation Framework): Valori's proprietary test framework designed specifically for low-code platforms like OutSystems, enabling efficient test automation without high licensing costs.
- MetaQ: A proprietary tool that offers instant feedback on Salesforce implementations, quickly assessing the quality of existing functionality.
- Core Layer Testing Approach: Developed for low-code applications, this approach focuses on the business logic at the core of applications for risk-based and cost-effective testing. It integrates into CI/CD pipelines, offers daily feedback, and requires less maintenance for test scripts.
- Methodologies and Frameworks: Valori employs distinct methodologies like the W-model and IPS-model for test strategy, along with techniques for risk analysis, test process audits, and quick scans. They also have a standard approach for determining, providing insight, and monitoring application performance.
5. Leadership & Management
Executive Team
- Jaap Merkus (CEO): As CEO, Jaap Merkus has been instrumental in Valori's growth, particularly during its collaboration with Holland Capital, which led to significant acceleration through targeted acquisitions and entrepreneurship. He spearheaded the company's readiness for its next phase of growth by joining Cerios, supported by Avedon Capital Partners.
Recent Leadership Changes
On April 4, 2023, Holland Capital sold its stake in Valori to Cerios, with Avedon Capital Partners taking over the investment role. Jaap Merkus remains as CEO, leading Valori as part of the Cerios group. This new brand, Cerios, aims to consolidate Salves, De Agile Testers Quality Accelerators, and Valori into a "House of Brands" to achieve a leading position in the consolidating IT quality services market.
6. Talent and Growth Indicators
Hiring Trends and Workforce
Valori employs over 200 QA and test professionals. The company actively recruits specialists passionate about their profession and knowledgeable in the IT market. Valori emphasizes professional and personal development for its employees, fostering an open culture and offering challenging projects with attractive employment benefits. They provide personal guidance and development, valuing the uniqueness of each "Valoriaan" to foster diversity and innovative solutions.
Key roles being recruited are typically within QA and test consulting, including Agile test professionals, performance testing specialists, and consultants with expertise in low-code platforms like OutSystems, Pega, and Salesforce.
7. Social Media Presence and Engagement
Digital Footprint
Valori maintains an active social media presence on LinkedIn, Facebook, and Twitter.
Their social media content often highlights thought leadership through insights on test automation, low-code testing, and IT quality, including blog posts by their consultants. They also announce partnerships with technology providers like Tricentis and OutSystems. Valori uses these platforms for employer branding, showcasing career opportunities, and promoting events and webinars where their experts share industry knowledge.
8. Recognition and Awards
Industry Recognition
Valori is recognized as the largest independent software testing and quality assurance provider in the Netherlands. With over 30 years of experience, the company has established itself as a leading authority in Quality Assurance and Testing. Its commitment to "Building IT Quality" and pragmatic approaches contribute to its strong reputation in the market.
9. Competitive Analysis
Major Competitors
Valori operates in the IT consulting and outsourcing industry, specifically within the software testing and quality assurance segment. Key competitors mentioned include:
- UST: Offers a broad range of IT services, including digital transformation, software development, and quality engineering, serving global markets.
- Happiest Minds: Provides diverse IT services, digital transformation solutions, and focused quality engineering services, with a global presence.
- Endava: A technology services company specializing in digital transformation, software development, and quality assurance for various industries worldwide.
These companies also offer a broad range of IT services, including digital transformation, software development, and quality engineering, often serving global markets.
10. Market Analysis
Market Overview
The IT Quality Assurance and Testing market is experiencing robust growth, driven by the increasing complexity of IT systems, rapid digital transformation initiatives, and a growing reliance on reliable data and technology. Organizations face continuous pressure to innovate quickly, necessitating modern and automated software testing to ensure high-quality, secure, and performant applications. The adoption of agile development and DevOps methodologies further underscores the need for continuous quality control throughout the software development lifecycle. The proliferation of low-code platforms also fuels demand for specialized testing approaches tailored to these environments. The industry is undergoing consolidation, exemplified by Valori's integration into the Cerios group, as companies aim to create comprehensive end-to-end quality solutions.
11. Strategic Partnerships
Valori has established several strategic collaborations and partnerships that enhance its market position and technological capabilities:
- Cerios Group: Valori is now part of the Cerios group, alongside Salves and De Agile Testers Quality Accelerators. This integration aims to create a leading "House of Brands" offering uniquely integrated quality solutions in the consolidating IT quality market.
- Holland Capital (Former Investor): Prior to its acquisition by Cerios, Holland Capital was an active shareholder from 2019, supporting Valori's growth ambitions and buy-and-build strategy.
- Avedon Capital Partners (Current Investor): Avedon Capital Partners took over the investment role from Holland Capital following the acquisition by Cerios, supporting Valori's next phase of growth.
- Omnext: Valori acquired a majority stake in Omnext in July 2021. Omnext specializes in software code analysis with its "Omnext Fit Test" platform, which complements Valori's QA and testing services by providing real-time insights into code quality and risks.
- OutSystems: Valori has been an official OutSystems Technology Partner since March 2021. This partnership focuses on incorporating quality rapidly and effectively throughout the software development lifecycle for OutSystems implementations, utilizing Valori's certified OutSystems test consultants and Core Layer Test approach.
- Tricentis: Valori collaborates with Tricentis, a global leader in test automation, to boost test automation in the Dutch market and leverage automated testing for faster release cycles.
- Gen25: As of September 2023, Valori partnered with Gen25 to provide additional value to Gen25 customers by professionalizing QA and testing, particularly within the Salesforce landscape, through structured approaches and test automation.
12. Operational Insights
Valori's operational strategy is anchored in its independent position, which allows it to provide unbiased advice and utilize the most effective state-of-the-art QA and testing tools, regardless of specific vendors. This independence is a significant competitive advantage in a market where many providers are influenced by tool suppliers. Their pragmatic approach, combined with a deep understanding of test techniques and test automation, enables them to adapt to diverse working methods, from traditional software development to agile and low-code environments. The integration with Cerios and the acquisition of Omnext represent strategic moves toward offering a more comprehensive and integrated quality solution, enabling end-to-end quality control from code analysis to deployment and maintenance. This vertical integration enhances their competitive advantage by providing a holistic service offering.
13. Future Outlook
Strategic Roadmap
Valori's strategic roadmap is focused on further solidifying its leading position in the IT quality assurance and testing market, particularly within the Netherlands and through its expanded capabilities as part of the Cerios group. The move to join Cerios, supported by Avedon Capital Partners, indicates a strong ambition for continued growth and market consolidation within the IT quality services sector.
Key future directions include:
- Expansion through Buy-and-Build Strategy: The acquisition of Omnext demonstrates a clear strategy of expanding capabilities and market reach through strategic takeovers, allowing Valori to offer uniquely integrated quality solutions. This approach is likely to continue under the Cerios umbrella.
- Enhancing End-to-End Quality Solutions: By combining Valori's QA and testing expertise with Omnext's software code analysis, the company aims to provide more complete and future-proof Software Quality Assurance for its customers.
- Continued Focus on Low-code Platforms: Given their established partnerships with OutSystems and expertise in testing Pega and Salesforce, Valori is well-positioned to capitalize on the growing adoption of low-code development, offering specialized testing services for these platforms.
- Driving Test Automation: Through collaborations with industry leaders like Tricentis and its own methodologies, Valori aims to boost test automation capabilities and adoption, enabling faster release cycles and higher software quality for clients.
