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Zendesk acquires Singapore-based Zopim in a deal worth up to US$29.8 million

Zafirah Salim | April 16, 2014
Zendesk claims that the acquisition will help accelerate its chat functionality

Zendesk acquires Zopim

The cloud-based helpdesk startup Zendesk announced last week of its recent acquisition of Zopim Technologies Pte Ltd, a Singapore-based live chat software provider.

It made the announcement without disclosing any figures. However, the company has also filed for its IPO, which will result in Zendesk getting listed on the New York Stock Exchange. The S-1 filing notes that Zendesk plans to raise US$150 million, TechCrunch reports. Also, according to the S-1, the Zopim deal is worth up to US$29.8 million.

Zopim’s flagship product is live chat software that is used by some 120,000 websites in 140 countries.

Why this acquisition?

According to Zendesk’s media statement, it wants to expand the chat capabilities of its customer service platform, and believes that the acquisition will provide customers of both companies with new options for purchasing and using both Zendesk and Zopim.

"Real-time chat has become the foundation for how customers want to communicate online today. It is convenient for customers and makes companies more approachable to more people,” said Mikkel Svane, founder and CEO of Zendesk. “Zopim has a proven track record of providing tools for proactive engagement. Most importantly, the Zopim team shares our belief in building products that are beautifully simple and easy for any company to use.”

Zendesk has upcoming plans to integrate Zopim chat with its customer service platform to offer live and proactive chat for its customers. Zendesk expects that Zopim will ultimately be bundled in all Zendesk customer service platform trials as part of the integration, and existing Zendesk customers will have new options for adding Zopim to their accounts.

 

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