Two powerhouses in the social management space are joining to form the largest independent end-to-end social relationship platform in the market. Sprinklr, a New York City provider of social media management tools, is buying Austin, Texas-based Dachis Group, a social analytics company, the companies announced today.
Terms of the deal were not disclosed, but Jeff Dachis, founder and CEO of Dachis Group, told CMSWire this morning that "everyone is happy with the outcome."
Andrew Jones, an analyst at Altimeter Group who focuses on social media management and cross-channel customer engagement, said the deal "makes sense." The companies are "very complementary," he explained, "not only in terms of technology but in terms of the talent at Dachis Group. Dachis has roots as a consultancy, which Sprinklr will be able to leverage in its business."
By acquiring Dachis, Sprinklr adds industry leading brand analytics and content optimization to a platform Forrester Research already rates as “the most powerful technology on the market.”
Big Companies, Low Profiles
If you can't rattle off much about either company involved in this deal, you're not alone. Neither has the brand recognition of Adobe, Oracle or Salesforce — just three of the companies that Sprinklr counts among its chief competitors, along with a number of small social media management startups, too.
But don't let the low profiles fool you. The two companies have collectively raised more than $95 million in venture capital and acquired 11 companies, including three Facebook Preferred Marketing Developers. And both have some powerful names behind them.
Dachis helped usher in full-service digital marketing in 1995 when he co-founded Razorfish out of a one-bedroom New York City apartment. Razorfish was sold several times before it was ultimately sold to Microsoft in 2007 as part of its $6 billion purchase of aQuantive and more recently was spun off and sold to Publicis for $530 million.
But What Do They Do?
Then there is Sprinklr. Founded in 2009, Sprinklr offers its clients tools to manage their social media platforms and better build relationships with customers. And while you may not know much about it, it has attracted dozens of top-tier companies, including Intel, Dell, Virgin America, Cisco Systems, DuPont, Samsung and General Motors.
Founder and CEO Ragy Thomas said Sprinklr targets only the biggest companies in the world. More than 80 percent of its clients take in more than $1 billion in revenue each year — and Ragy said he turns down a few potential clients each day because they simply aren’t big enough.
Sprinklr has some impressive admirers. The Altimeter Group has called it “the most capable” Social Media Management System to serve the needs of large organizations.
Econsultancy gave Sprinklr two consecutive “top-right” rankings.