Freshworks Inc. (NASDAQ: FRSH) has announced a definitive agreement to acquire Torii, a software management platform focused on SaaS and AI spend governance. The acquisition will extend Freshservice, Freshworks' IT service management solution, into full software inventory, usage, and cost visibility. The move responds to the growing complexity of managing modern software and AI tools across large organizations.
Closing the Visibility Gap in Modern IT
IT leaders are increasingly responsible for governing technology estates they can only partially see. Rapid growth in SaaS and AI tools has created blind spots across usage, licensing, and spending, while consumption-based AI pricing has introduced cost patterns many finance systems were not built to track. Torii is designed to close that gap and reduce the security and data risks linked to unmanaged tools.
Unified Technology Inventory and Spend
The combination of Freshservice and Torii is expected to bring a complete picture of technology inventory, usage, and spend into one place. Organizations can gain visibility into every application, license, and identity running across the business. The integrated view also offers clarity on what technology costs and what it delivers, plus faster employee access with fewer IT tickets.
AI Consumption Governance
Torii adds granular AI spend management to Freshservice by tracking consumption to the token level. It attributes that usage to the people and teams driving it and forecasts where costs are heading. IT teams can then charge back spend to specific groups, set usage limits, and catch anomalies while they remain small.
Market Recognition and Customer Base
Torii pioneered the SaaS management platform category and was recently named a Leader in the 2026 Gartner Magic Quadrant for SaaS Management Platforms. The company already serves well-known organizations, including Hearst Corporation, Groupon, and Koch, Inc. These customers rely on Torii to govern complex software estates and AI spending across their operations.
Executive Perspectives
Freshworks CEO and President Dennis Woodside said modern IT teams are being asked to govern more of the business with less visibility into costs. He explained that Freshservice already gives IT one place to see everything it runs, and Torii extends that view to software and AI spend. According to Woodside, finance and IT can stop reconciling spreadsheets and start making decisions together.
A Shared View for IT, Finance, and Security
Torii CEO Uri Haramati said AI and the software behind it are changing how every team works, yet most CIOs still cannot see or control it. He noted that IT, finance, and security have traditionally worked from different partial pictures of the same problem. With Freshservice as one system of record, extending it to software and AI means one less blind spot rather than one more dashboard.
Transaction Details
Freshworks expects the transaction to close in its fourth fiscal quarter of 2026, subject to customary closing conditions. The companies did not disclose financial terms, but the planned integration is intended to give IT organizations a single source of truth for software and AI infrastructure. Once completed, the acquisition will place Torii's SaaS management capabilities directly within Freshservice.
The Torii acquisition signals that software and AI spend governance is becoming a core part of enterprise IT management. By combining IT operations with granular SaaS and AI cost visibility, Freshworks aims to help organizations reduce waste, control risk, and improve decision-making. If completed as expected, the deal will give Freshservice customers a broader foundation for governing technology as AI moves from experiment to infrastructure.