Six months after appointing a new CEO and laying off 20 employees in Israel, Israeli company Clicktale has been sold to French company Contentsquare. The acquisition price was not disclosed, but industry sources said the deal was in both cash and shares. The two companies deal in user experiences on digital platforms. They utilize everything from users' mouse movements to their actual activity to understand their behavioral psychology.
The main shareholders in Clicktale, which has raised $90 million over the years, are foreign funds Kohlberg Kravis & Roberts (KKR) and Amadeus Capital. The $25 million raised by Clicktale in recent months was apparently designed to last the company until it made a profit. The cash and shares deal gives investors an opportunity to enhance their investment. Contentsquare has raised a total of $120 million to date.
Clicktale was founded 13 years ago by executive chairperson Dr. Tal Schwartz and Arik Yavilevich, and is currently managed by CEO Shlomi Hagai, previously the company's CFO. The company's annual revenue amounts to tens of millions of dollars, but its financial structure leaves something to be desired. Hagai says that during his term as CEO, he bent his efforts towards cutting expenses and making a profit. The growth rates of both Contentsquare and Clicktale are unknown. Clicktale has 190 employees, 130 of them in Ramat Gan, and the remainder in its offices in New York, San Francisco, and London. Contentsquare has major offices in London, Munich, New York, Paris and San Francisco.
Clicktale has changed its strategy in recent years from small and medium-sized customers to enterprise customers. The company currently has 300 customers, half of which are large businesses. In August 2017, then-CEO Tuval Chomut said that the company's annual growth rate would reach 40-50%, and annual revenue would reach $100 million, but the company failed to reach this goal.
Hagai expresses optimism about the merged company, saying that while Clicktale derives most of its revenue from the US, the French company operates primarily in Europe. He added that the merged company would serve 600 customers, including 30% of the Fortune Global 100. Clicktale's customers include Dell, T-Mobile, and Royal Bank of Scotland. Contentsquare provides its solutions to companies such as Volkswagen and personal care and beauty products chain Sephora.
Hagai will continue managing activity in Israel, while Contentsquare founder and CEO Jonathan Cherki will head the merged company. In addition to development, Clicktale's activity will also include customer success, because it does not want to lose customers as a result of the merger. The two companies will begin developing a joint product that will use technology from both of them.
Published by Globes, Israel business news - en.globes.co.il - on July 1, 2019
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