Exit Nation: Software Giant SAP Acquires Israeli Customer Identity Firm Gigya For $350M
SAP, Europe’s largest software company, has acquired Israeli customer identity management firm Gigya for $350 million. SAP confirmed the acquisition Monday, but did not disclose the terms of the deal. However, since Gigya was valuated at $300 million during its 2014 funding round, it’s been reported that SAP agreed to pay $350 million for the Israeli company.
Gigya, which views itself as the “Facebook for organizations,” currently manages 1.3 billion customer identities in order to build identity-driven relationships for its clients, which include Fox, Forbes and Turner.
Gigya’s platform helps these publishers build digital relationships with customers, and allows them to manage customers’ profiles, preferences, opt-in options and consent settings, with customers maintaining control of their data at all times.
Gigya‘s solution addresses changing geographical privacy issues and manages compliance requirements, such as the upcoming General Data Protection Regulation, which intends to strengthen and unify data protection for European Union citizens. Recently, Forrester Research positioned Gigya as a top vendor in its field.
Founded by Eyal Magen, Eran Kutner and Rooly Eliezerov, Gigya has raised $106 million since its inception in 2006, from Intel Capital, Mayfield Fund, DAG Ventures, Greenspring Associates, and Benchmark.
The acquisition of Gigya will “allow us to take leadership of the emerging customer identity and access management market,” SAP’s Carsten Thoma said in a statement. “Consumer trust is the main currency to succeed for customer-driven organizations. This is what Gigya is known and recognized for.”
By way of acquisition, SAP’s Hybris Solutions division intends to offer a cloud-based data platform enabling companies to profile new customers, gather accurate conclusions from disparate consumer engagement sources, and collect data for enhanced consumer choices.
“A vital step for digitizing businesses”
According to Patrick Salyer, CEO of Gigya, the deal is “a vital step for digitizing businesses because companies need to be able to draw accurate conclusions seamlessly across all channels, including web, mobile, in-store or connected devices, and the Internet of Things, as well as collect data about consumer preferences. Together, we are well positioned to drive more effective marketing, sales and service through data, while the customer stays in control of how much data is shared.”
Gigya employs some 300 people in its offices in Tel Aviv, Israeli, and California. The company’s operations will become part of the SAP Hybris business unit for customer engagement and commerce. The transaction is expected to close by the end of this year.