d-id Acquires Simpleshow: Expanding Video Creation Capabilities

D-ID Acquires Simpleshow to Expand Video Creation Capabilities

D-ID, a leading platform for video generation and editing, announced on Tuesday the acquisition of Simpleshow, a Berlin-based B2B video creation platform.

Deal Details and Integration

The financial specifics of the acquisition were not publicly revealed by either company. According to D-ID’s chief executive, Gil Perry, Simpleshow’s product will initially function under the D-ID brand, with a full platform merger planned for the future.

Simpleshow's Background and Global Presence

Founded in 2008, Simpleshow has previously secured over $20 million in funding, as reported by Crunchbase. The company maintains a global footprint with offices located in key cities including Berlin, Luxembourg, London, Miami, Singapore, Hong Kong, and Tokyo.

Following the merger, operations will be consolidated into three primary locations: Berlin, Tel Aviv, and the United States. While the exact size of Simpleshow’s team wasn’t disclosed, the combined organization will employ 140 individuals.

Strategic Rationale for the Acquisition

Perry explained that Simpleshow initially proposed a strategic partnership. However, D-ID recognized a strong alignment between the two companies’ leadership and product offerings.

“Accelerating our market capture within the enterprise avatar video sector was a key objective,” Perry stated. “We determined that acquiring Simpleshow would provide the necessary impetus to achieve this goal.”

Future of Digital Avatars in Video

Both D-ID and Simpleshow foresee significant growth in the utilization of digital avatars across various video applications, including training materials, marketing campaigns, and sales presentations. D-ID currently offers a range of AI-powered interactive avatars to its clientele.

Simpleshow’s Evolution and SaaS Transition

Karsten Boehrs, CEO of Simpleshow, noted that the company began as a video production agency serving businesses and enterprises over a decade ago.

“To broaden our reach and effectively serve a larger international client base, we transitioned to a SaaS-based technology platform,” Boehrs explained. “In 2017, we launched one of our initial tools – a text-to-video converter for our customers.”

Exploring Acquisition Options

Boehrs further added that, in recent years, the advancement of AI prompted discussions with companies like Synthesia regarding potential collaborations, ultimately leading to the acquisition by D-ID.

Expanding Client Portfolio and Financial Impact

With the acquisition, D-ID gains access to Simpleshow’s extensive client base, which includes prominent organizations such as Adobe, Audio, Airbus, Microsoft, Bayer, HP, T-Mobile, McDonald’s, eBay, and Deutsche Bank. Perry anticipates this will positively impact the company’s financial performance and accelerate its path to profitability.

Interactive Training Videos on the Horizon

D-ID’s future plans include the development of interactive training videos. These videos will allow users to pause the avatar’s presentation to ask questions or participate in quizzes.

Competitive Landscape

D-ID faces competition from other companies in the enterprise digital avatar space, including Synthesia and Soul Machines. Additionally, major players like Google and McKinsey are also developing their own avatar solutions.

Funding and Acquisition Resources

To date, D-ID has raised $60 million in funding. The company confirmed that the acquisition was financed through existing funds, but did not disclose the specific amount allocated.