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Discovering the Acquisition Deal
Hello readers, and welcome to this informative article on the acquisition deal between Zendesk and Base CRM. In 2018, the customer service software company, Zendesk, acquired Base CRM, a sales force automation platform. The deal sent shockwaves through the tech industry, with many speculating about the cost of the acquisition. In this article, we will delve into the details of the acquisition, how much Zendesk paid for Base CRM, and what this means for the future of both companies. So sit back, relax, and let’s dive in!
Introduction
Zendesk has been a well-known player in the customer service software space for years. The company’s software solutions help businesses manage customer interactions across various channels, including email, live chat, voice, and even social media. With a focus on providing a comprehensive customer experience, Zendesk has positioned itself as a leader in the industry. However, with the acquisition of Base CRM, Zendesk has set its sights on expanding its capabilities to include sales force automation.
Base CRM, on the other hand, is a sales force automation platform that helps teams manage their sales pipelines and close more deals. The software includes features such as lead and deal tracking, email integration, and sales forecasting. By acquiring Base CRM, Zendesk aimed to provide its customers with a more comprehensive suite of tools to manage both their customers and sales processes.
But just how much did Zendesk pay for Base CRM? Let’s take a closer look at the details of the acquisition.
The Acquisition Deal
The acquisition of Base CRM by Zendesk was announced in September 2018. The deal was an all-cash transaction, meaning that Zendesk paid for Base CRM with cash instead of using stock or other assets. The official press release did not disclose the exact amount that Zendesk paid for Base CRM, but reports started emerging in the media shortly after the deal was announced.
According to Crunchbase, a leading platform for tracking startups and investments, Zendesk paid $125 million for Base CRM. While this figure was not officially confirmed by either company, it has been widely reported in various media outlets. The acquisition was expected to close in the fourth quarter of 2018, subject to regulatory approval.
The acquisition of Base CRM was a strategic move for Zendesk, as it allowed the company to expand its offerings and target a new market segment. With the addition of sales force automation capabilities, Zendesk could now provide a more comprehensive solution for managing both customer interactions and sales processes.
What the Acquisition Means for Zendesk and Base CRM
The acquisition of Base CRM by Zendesk has several implications for both companies. For Zendesk, the addition of sales force automation capabilities means that the company can now offer its customers a more comprehensive solution for managing their entire customer lifecycle. This also puts Zendesk in direct competition with other sales force automation providers, such as Salesforce and HubSpot.
For Base CRM, the acquisition by Zendesk means access to a larger customer base and more resources to continue developing its software. Base CRM will now be able to leverage Zendesk’s expertise in customer service to provide a more complete solution for managing both sales and customer interactions.
The Breakdown of the Acquisition Deal
| Company | Acquired | Amount Paid |
|---|---|---|
| Zendesk | Base CRM | $125 million (reported) |
FAQs
What is Zendesk?
Zendesk is a customer service software company that provides customer support, sales force automation, and customer engagement tools.
What is Base CRM?
Base CRM is a sales force automation platform that provides lead and deal tracking, email integration, and sales forecasting capabilities.
When was the acquisition of Base CRM by Zendesk announced?
The acquisition of Base CRM by Zendesk was announced in September 2018.
What payment method did Zendesk use to acquire Base CRM?
Zendesk used an all-cash transaction to acquire Base CRM.
Did Zendesk disclose the exact amount it paid for Base CRM?
No, the official press release did not disclose the exact amount that Zendesk paid for Base CRM.
What was the reported amount that Zendesk paid for Base CRM?
According to Crunchbase, Zendesk paid $125 million for Base CRM.
When did the acquisition of Base CRM by Zendesk close?
The acquisition was expected to close in the fourth quarter of 2018, subject to regulatory approval.
Why did Zendesk acquire Base CRM?
Zendesk acquired Base CRM to expand its capabilities and provide a more comprehensive suite of tools to manage both customer interactions and sales processes.
What does the acquisition of Base CRM mean for Zendesk?
The acquisition of Base CRM allows Zendesk to target a new market segment and compete with other sales force automation providers.
What does the acquisition of Base CRM mean for Base CRM?
The acquisition by Zendesk means access to a larger customer base and more resources to continue developing its software.
Will Base CRM’s software continue to be developed?
Yes, Base CRM will continue to develop its software under the Zendesk brand.
Will Base CRM be rebranded as Zendesk?
No, Base CRM will continue to operate under its own name, but with the added support and resources of Zendesk.
What other companies does Zendesk compete with?
Zendesk competes with other providers of customer service and sales force automation software, such as Salesforce and HubSpot.
Can I still use Base CRM as a standalone product?
As of the time of writing, Base CRM is still available as a standalone product. However, it is expected that over time, the software will be integrated with Zendesk’s customer service software.
Conclusion
In conclusion, the acquisition of Base CRM by Zendesk was a strategic move for both companies. For Zendesk, it meant expanding its offerings to include sales force automation, while for Base CRM, it meant access to a larger customer base and more resources to continue developing its software. While the exact amount that Zendesk paid for Base CRM was not officially disclosed, reports suggest that the figure was around $125 million. This acquisition puts Zendesk in direct competition with other sales force automation providers and positions the company for further growth in the future.
If you are looking for a comprehensive solution for managing your customer interactions and sales processes, consider giving Zendesk a try. With a wide range of tools and features, Zendesk can help you provide top-notch customer support and close more deals.
Closing Disclaimer
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer, or company. This article is for informational purposes only and should not be construed as legal, financial, or investment advice. Before making any investment decisions, please consult with a qualified professional.
