Small Acquisitions: 3 Enterprise Deals Show Continued Activity

Recent Trends in Mergers and Acquisitions

Throughout the current year, I have analyzed nine mergers and acquisitions (M&A) transactions, with the most substantial being Citrix’s acquisition of Wrike for $2.25 billion. However, not all M&A activity centers around exceptionally high valuations.

We will now examine three smaller-scale deals, demonstrating continued robust activity within the lower range of the acquisition market.

Strategic Advantages of Smaller Acquisitions

Organizations are increasingly turning to acquisitions as a method to augment their existing capabilities and integrate skilled personnel. Smaller acquisitions offer a pathway to expand the product roadmap without the necessity of complete internal development.

This approach allows acquiring firms to gain additional features and functionalities with a relatively limited financial investment.

Disclosure of Financial Details

Often, the financial terms of smaller deals remain undisclosed. This is particularly true when the transaction does not significantly impact the financial reporting of a publicly listed company, removing the obligation to publicly reveal the price.

In some instances, however, the dollar amount is made available, as was the case with one of the deals we will discuss.

Examining Recent Transactions

Let's explore three recent acquisitions that have recently been completed.

These transactions highlight the ongoing dynamism within the M&A landscape, even outside of the headline-grabbing, multi-billion dollar deals.

Tenable Acquires Alsid

Tenable, a network security firm that launched its initial public offering in 2018, has completed the acquisition of Alsid, a French startup specializing in Active Directory security, for a sum of $98 million. Active Directory, a widely-used user management system developed by Microsoft, frequently becomes a focal point for malicious cyber activity.

Compromised user credentials provide attackers with a straightforward pathway into a network, and Alsid’s technology is specifically engineered to mitigate this risk.

As is common within the cybersecurity industry, companies often seek to expand the scope of their services. The integration of Alsid provides Tenable with an additional capability and enhances its overall security platform coverage.

According to a statement within the investor FAQ regarding the acquisition, “The purchase of Alsid is seen as a logical progression into user access and permissioning management. Upon completion, this will strategically support our Cyber Exposure approach, assisting organizations in identifying and minimizing cyber risks across their complete attack surface.”

Emmanuel Gras, the CEO and co-founder of Alsid, explained that the company’s inception was driven by a desire to address a critical security vulnerability. “Alsid was founded with the goal of assisting organizations in resolving a significant security issue: an inadequately protected Active Directory, which is a prevalent entry point for threat actors to move laterally within corporate networks,” Gras stated.

Founded in 2014 and headquartered in Paris, Alsid had secured relatively limited funding, totaling approximately $15,000 based on data from Crunchbase.

Copper’s Acquisition of Sherlock

Copper, the CRM solution integrated with Google Workspace, has announced the acquisition of Sherlock, a platform specializing in customer experience analysis. The financial details of this transaction have not been publicly disclosed.

The shift towards online shopping accelerated by recent global events has underscored the importance of personalized customer interactions. A deeper understanding of customer behavior is now crucial for fostering engagement and boosting sales figures.

Sherlock provides capabilities that will enable Copper’s user base to gain more comprehensive insights into their customers. This acquisition aims to enhance the ability to tailor experiences effectively.

According to Copper CEO Dennis Fois, as stated in a company blog post, Sherlock is a pioneering platform for engagement analytics and scoring. It identifies customer and prospect intentions, providing actionable intelligence for sales, account management, and customer success teams.

Fois further emphasized that strong relationships are built on consistent engagement. He believes integrating Sherlock will allow Copper to develop a CRM system centered around proactive action and sustained progress.

RapidAPI Acquires Paw

The proliferation of APIs has fundamentally altered software development methodologies. However, this expansion has simultaneously generated new challenges concerning their effective management, particularly within extensive organizations.

RapidAPI, a leading API management platform, recently announced its acquisition of Paw. This strategic move is designed to address the growing complexities of API lifecycles.

The integration of Paw empowers RapidAPI to offer comprehensive API design capabilities. Consequently, customers now have access to a unified solution for all aspects of API creation and administration within their corporate infrastructure.

According to a company statement, the acquisition extends RapidAPI’s open API platform throughout the complete API development process. This creates a seamless experience for developers, spanning from initial development through to consumption, and encompassing multiple cloud environments and gateways.

Founded in 2015, RapidAPI has secured over $67 million in funding, as reported by Crunchbase.

Their latest funding round, totaling $25 million, was completed last May. Investors included Andreessen Horowitz, DNS Capital, Green Bay Ventures, M12 (Microsoft’s Venture Fund), and Grove.

Such acquisitions are increasingly common, allowing companies to rapidly enhance their platforms. They provide expanded functionality to customers in a cost-effective manner, avoiding substantial capital expenditure for independent development.