Personalization vendor BloomReach buys content management company Hippo
October 26, 2016 07:00 AM
E-commerce personalization vendor BloomReach said today it has purchased Amsterdam-based web content management company Hippo.
Hippo works with 150 companies in 13 countries including online retailer REI Inc., No. 74 in the Internet Retailer 2016 Top 500 Guide, as well as government organizations such as the U.K.’s National Health Services and the Dutch Foreign Office. BloomReach, which launched in 2009, works with 170 U.S. and U.K.-based e-commerce companies including, including Neiman Marcus Group Ltd. LLC (No. 36), Wayfair.com (No. 24), Staples Inc. (No. 5) and Nordstrom Inc. (No. 18). The purchase price was not disclosed.
Hippo has about 100 employees and the two companies combined will have around 300 employees. BloomReach has raised $97 million from investment firms including Bain Capital Ventures, Battery Ventures and Salesforce Ventures, and says it is experiencing about 70% growth in the average value of its contracts.
Adding Hippo’s content management platform to BloomReach’s personalization system will save retailers time and money, BloomReach says. “Why should providing a truly personalized experience today require an enterprise to spend months or years in CMS implementation and millions of dollars integrating analytics, personalization, testing, targeting and data management solutions on top of that CMS?,” says Raj De Datta, CEO and cofounder of BloomReach. “That’s an antiquated model.”
Both Hippo and BloomReach charge a monthly fee for their services based on the company’s size. That fee is determined by number of page views or revenue for BloomReach customers and by page views for Hippo clients. Datta says BloomReach will sell Hippo’s content management services and BloomReach personalization services separately or as a package, and he envisions offering discounts for clients who sign up for both.
Hippo’s strong presence in Europe and BloomReach’s U.S. footprint will complement one another, the companies say. BloomReach and Hippo have been in talks since April about the acquisition, Datta says.
Hippo will continue to operate out of Amsterdam as an independent company. As part of the deal, Hippo CEO Jeroen Verberg will join the BloomReach board of directors and work as general manager of the Hippo business unit. All other founders and members of the Hippo management team will remain with the company.