SAP, Europe’s largest technology company, has announced plans to acquire Israeli customer identity software provider Gigya for an undisclosed sum. As a result of the deal, the tech giant hopes to bolster its position in the high-growth online customer relationship marketing space. SAP will integrate Gigya’s user identity access and management platform with its Hybris customer profile data-matching software.
Twelve-year old Gigya was founded in Israel before moving its headquarters to Silicon Valley. Numerous Israeli media outlets, including Haaretz, have pegged the deal at $350 million, yet neither company has officially confirmed the number. In 2013, Gigya was reportedly valued at $250 million when it raised $35 million in a round led by Intel Capital, bringing its total funding to nearly $106 million. The Mountain View, Calif.-based software provider enables companies to manage customer marketing profiles and preferences, while consumers maintain the ability to control their data with the option to opt-in and give their consent.
The acquisition will also help SAP as it hopes to gain more business with enterprises in Europe seeking to keep up with the EU’s latest privacy regulations including the upcoming General Data Protection Regulation.
Gigya manages 1.3 billion customer identity profiles for over 700 of the world’s leading businesses and half of the top 100 U.S. web properties. The firm lists clients such as Fox, Forbes, Bose and Verizon, as well as major European brands including ASOS, Bayer, L’Oreal and KLM. The firm is ranked by Forrester as a leader in the high-growth user identity management space against rivals such as Salesforce, Ping Identity, AuthO and Microsoft.
The transaction is slated to close by the end of 2017, subject to regulatory approval.