Salesforce Snaps Up Another Startup HeyWire

by CXOtoday News Desk    Sep 09, 2016

Salesforce

Salesforce has acquired a startup called HeyWire, at an undisclosed amount after spending USD 4 billion on other acquisitions this year. In a recent blog post, HeyWire CEO Meredith Flynn-Ripley announced the deal. HeyWire’s software, which earlier delivered messages through 1-800 line, will be integrated with Salesforce’s Service Cloud business once the deal closes.

Salesforce has been in an acquisition spree, spending nearly USD4 billion over the past 12 months on buying companies. The financial details of the latest deal however were not disclosed.

HeyWire, which was founded six years back has raised a total of USD13.3 million so far. In 2010, HeyWire launched as the world’s first mobile messaging cloud provider. From that point of view it’s only fitting that HeyWire joined Salesforce, the company that pioneered the shift to enterprise cloud computing.

“As a member of the Salesforce ecosystem, we’ve witnessed first-hand Salesforce’s commitment to disrupting markets, we’ve seen the impact conversational messaging is making on our customers’ businesses and we’re thrilled with the opportunity to deliver innovative solutions in enterprise mobile messaging to Salesforce customers worldwide” said HeyWire CEO in the official blog post.

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HeyWire aims to bring new communication channel to the Salesforce Service Cloud with fully integrated mobile messaging capabilities that enable companies to connect with their customers in entirely new ways.

The spike in M&A has some investors concerned about the company’s growth, as it failed to meet its billings forecast and revenue guidance in its most recent earnings.

According to an article in Business Insider, Salesforce CEO Marc Benioff doesn’t seem concerned about the pace of acquisitions, saying the M&A market just opened up this year with companies becoming available at reasonable prices. During the company’s earnings call, Benioff hinted it will likely continue to scoop up companies for the rest of the year.(read it here)

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“This M&A window, I talked about that I think on the last call, openly in the press, seems to have opened for the year. I think it will probably close, probably at the end of this calendar year. But it’s been incredible time for us to acquire some phenomenal assets,” he said.