SMB-marketing-focused SaaS leader Thryv has announced the acquisition of CRM and marketing automation platform Keap. The transaction is valued at $80 million, all in cash and subject to customary adjustments. The deal is expected to close in the fourth quarter, subject to standard closing conditions.
This should round out Thyrv’s expansive offerings for SMB marketing and operational functions. CRM is a key part of that mix, so Keap’s focus in that area should buttress Thryv’s corresponding and complementary SMB offerings. The same can be said for increasingly-demanded marketing automation.
“We have long admired Keap as a company,” Thryv Chairman and CEO Joe Walsh told Localogy Insider. “They are well known for their simple, yet powerful automations. Thryv has many customers that will benefit from automating their processes using Keap’s quality software.”
Key Components
Going deeper into the value that Keap brings to the table, Thryv breaks down a few key components and areas of alignment. We’ve summarized them below:
Complimentary Strengths: Keap’s focus on marketing automation and CRM software compliments Thryv’s suite of products, as noted. This amplifies Thryv’s cross-sell and upsell opportunities within its existing subscriber base; while it also elevates the value of its bundle to attract new business.
Integration Opportunities: Beyond complementary strengths noted above, the plan is to integrate functions on deeper levels. In other words, Thryv and Keap’s products won’t just sit next to each other in a new bundle, but they’ll be infused with each other to mutually elevate functionality where strategic.
Combined Base: Keap extends Thryv’s SMB SaaS positioning and market share, resulting in a combined base of 100,000+ SaaS subscriptions on day 1. That expanded scale strengthens Thryv’s competitive advantage relative to its SMB SaaS competitors.
Channel and Geographic Expansion: Beyond Keap’s customer base, its partner channels position Thryv to expand and buttress its own set of direct and partner channels. There’s also a geographic element to the deal given Keap’s footprint in markets such as Europe and Australia.
Multifaceted Move
Also of note, Thryv disclosed that the acquisition – again valued in cash – is meant to be funded by proceeds from a mix of recent equity and debt financing. After doing some digging (credit: Bill Dinan), this likely correlates to Thryv’s $75 million stock offering announced earlier this week.
Returns will also flow quickly through recurring revenue, as noted. In other words, Thryv not only gains Keap’s tech and competency in the above functional areas, but also its customers, distribution channels and, again, geographic footprint. So altogether, Thryv’s acquisition of Keap is a multifaceted move.
“Keap has a strong and loyal customer base serviced by a large partner channel,” said Walsh. “These customers will benefit from the Thryv product catalogue. We look forward to adding the talented Keap employees to the Thryv team.”
