SAP gobbles customer identity management startup Gigya for $350m
Gets its mitts on juicy GDPR-friendly data security tech
Posted in Business, 25th September 2017 14:48 GMT
German enterprise giant SAP has bought customer identity management firm Gigya for a reported $350m.
Gigya, which is headquartered in Mountain View but started life in Israel, offers companies a platform to manage their customers' details.
The platform, which has about 1.3 billion customer identities, collects usage data, but also records customers' opt-in and consent settings.
These go into the firm's registration-as-a-service, which manages compliance requirements, including the incoming General Data Protection Regulation.
It's this capability that's likely to be the driver for SAP's acquisition, which Haaretz reported was for $350m, as it allows the German biz to quickly position itself in the growing GDPR software market.
SAP will also get access to Gigya's 700 or so customers, which include big brands like Asos, Bose and Forbes.
The firm said it wants to be the first organisation that offers a cloud-based data platform on which companies can profile and convert new customers, and collect data on consumer choices in a way that is "in line with regulations".
Gigya's kit will be used to "enhance" SAP's Hybris e-commerce platform, which SAP bought in 2013, and Gigya is already a partner.
"Gigya brings a wealth of skills and expertise that will significantly enhance the SAP Hybris Profile solution and allow us to take leadership of the emerging customer identity and access management market," said Carsten Thoma, president and cofounder of SAP Hybris.
"Consumer trust is the main currency to succeed for customer-driven organizations. This is what Gigya is known and recognised for."
Gigya, which was listed as being a top vendor in the field of customer identity and access management by analysts Forrester, has brought in more than $100m in equity funding since it was founded in 2006. It was valued at $300m in its last round in 2014.
The firm has 300 employees, who are expected to move over to SAP as part of the deal – although the terms have not been disclosed. ®