Automattic Acquires Clay: Enhancing Online Tools with Identity

Automattic Acquires Clay, a Relationship Management Application

Following the acquisitions of universal messaging applications Beeper and Texts.com, Automattic, the company behind WordPress.com, has expanded its portfolio with the addition of Clay.

Deal Details and Background

The financial specifics of the acquisition remain undisclosed. However, Clay had previously secured over $9 million in venture funding from investors including General Catalyst and Forerunner Ventures.

The application will continue to receive support and is slated for future integration with other Automattic products, notably Beeper.

What Does Clay Do?

Launched in 2021, Clay functions as an advanced address book or a personal CRM system. It allows users to effectively organize their contacts.

The software aggregates updates from various platforms such as LinkedIn, Facebook, WhatsApp, and X, alongside data from address books and calendars.

Users can track important life events and details about their connections, including job changes, relocations, and updated biographical information.

Clay also facilitates the addition of personalized notes to contact entries, recording details like meeting circumstances or family member names.

A dedicated timeline for each contact displays note additions, last interaction dates, and other engagement records.

AI Integration with Nexus

Clay subsequently incorporated AI capabilities through its Nexus assistant.

Nexus enables users to pose questions about their network, such as identifying contacts at a specific company or suggesting connections for visits to cities like New York.

The AI is designed to seamlessly integrate into users’ daily workflows.

Team Integration and Future Plans

With the acquisition finalized last week, Clay’s team, including co-founders Zachary Hamed and Matthew Achariam, will join Automattic’s Other Bets Division.

This division also encompasses Beeper and Gravatar.

Achariam stated the company’s core mission centers on fostering relationships and promoting attentiveness.

He emphasized that all features are designed to reinforce this mission by consolidating various aspects of relationship management into a single platform.

Synergy with Automattic’s Ecosystem

Automattic cited Clay’s potential for integration within its broader ecosystem as a key reason for the acquisition.

This ecosystem currently includes the universal chat application Beeper, formed through the merging of Texts.com and Beeper.

The founders of Clay expressed a shared vision with Automattic and appreciation for the opportunity to continue developing their application.

Long-Term Vision for Clay

Hamed highlighted the importance of longevity, expressing a belief that the application should endure beyond any single company.

The long-term strategy for Clay at Automattic involves integration with Beeper, with the ultimate goal of establishing it as an identity layer for a diverse range of tools.

While these plans are still under development, Automattic has not yet committed to a specific timeline for their implementation.

The company also refrained from commenting on potential changes to Clay’s pricing structure.

Currently, Clay operates on a freemium model, with paid plans beginning at $10 per month, or $40 per seat monthly for teams.

Shared Values and Open Technologies

Clay’s founders believe their values align with Automattic’s, making the acquisition a natural fit.

Achariam noted Automattic’s commitment to open source technology, a principle Clay’s team also strongly supports.

The Clay team is also keen on integrating with other open technologies, such as ActivityPub (used by Mastodon) and AT Protocol (used by Bluesky).

User Base and Platform Availability

While specific user numbers were not disclosed, Clay reports managing over 150 million relationships within its application.

The application is currently available on macOS, Windows, iOS, and via web access.