Freshworks (NASDAQ: FRSH) has signed a definitive agreement to acquire Torii, a SaaS management platform. The deal extends Freshservice, Freshworks’ IT service management product, into software management and AI spend governance. The companies announced it on October 12.

The price and financial terms were not disclosed. The deal is expected to close in Freshworks’ fourth fiscal quarter of 2026, subject to customary closing conditions.

Why Freshworks is buying

The companies say SaaS and AI tool sprawl leaves IT teams with only partial visibility. Consumption-based AI pricing also creates costs that most finance systems were not built to track. Left unaddressed, that gap can mean unnecessary software spend and greater security and data risks.

What Torii does

Torii was founded in 2017 and was recently named a Leader in the 2026 Gartner Magic Quadrant for SaaS Management Platforms. The release says it pioneered the category. Its platform gives teams visibility into applications, AI projects, spend, licences, users, owners and access, and links that to automated workflows. Those workflows cut waste, automate lifecycle tasks, support renewals and keep compliance evidence ready.

For AI, Torii tracks consumption per person and team, forecasts usage, and supports chargeback and usage limits. Its customers include Hearst Corporation, Groupon and Koch, Inc.

What the combination offers

Together, the companies aim to give one view of a business’s technology inventory, usage and spend. That covers every application, licence and identity in use, along with their cost and value. They say it should mean faster employee access and fewer IT tickets.

Dennis Woodside, CEO and President of Freshworks, said: “Freshservice already gives IT one place to see everything they run.” He said the combination lets finance and IT make decisions together rather than reconcile spreadsheets. Torii CEO Uri Haramati said: “Extending that to software and AI means one less blind spot, not one more dashboard.”

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