Technology

Zoom Acquires Ireland-Based Employee Communications Platform Workvivo

Zoom, a leading video-conferencing platform, has announced plans to acquire Workvivo, an Irish startup that specializes in improving companies’ internal communications and culture. The acquisition is seen as a strategic move by Zoom to diversify its product suite and provide a comprehensive communication solution for enterprises.

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Workvivo: A Platform for Asynchronous Communication

While many enterprise communication tools focus on real-time collaboration, Workvivo takes a different approach. Its platform is designed to foster employee engagement at a broad level through an activity feed, people directory, surveys, and critical company communications. This modern-day intranet-like platform allows companies to share information, promote culture, and encourage employee interaction.

Workvivo’s Achievements

Founded in 2017 in Cork, Ireland, Workvivo has gained a impressive roster of customers, including Amazon, RyanAir, and Bupa. The company has raised nearly $40 million since its inception, with a notable investment from Zoom founder Eric Yuan in 2019. This acquisition is not surprising given the strategic connection between the two companies.

The Remote-Work Revolution and Workvivo’s Success

Workvivo was perfectly positioned to capitalize on the remote-work revolution sparked by the global pandemic. The company reported a 200% growth in ARR (annual recurring revenue) in 2020, making it an attractive acquisition target for Zoom. The video-conferencing giant has noted that businesses need to rethink their approach to retain talent and build a strong company culture.

Zoom’s Strategic Move

In its announcement, Zoom highlighted the importance of engaging employees and driving culture through connection. With Workvivo under its wing, Zoom will gain direct access to big-name enterprise clients and expand its product suite to support both real-time and asynchronous communication tools. This strategic move will enable Zoom to differentiate itself in a competitive market.

Previous Acquisitions by Zoom

While Zoom is not known for its M&A activity, it has made notable acquisitions in the past. The company snapped up conversational AI startup Solvvy last year, marking a significant move into the customer service space. Workvivo’s acquisition follows this trend and demonstrates Zoom’s commitment to expanding its offerings.

Integration Plans

The transaction is expected to close in the first quarter of 2024, with the Workvivo team joining Zoom after integration. This will enable the two companies to leverage their combined expertise and create a more comprehensive communication solution for enterprises.

Conclusion

Zoom’s acquisition of Workvivo marks an exciting development in the enterprise communication space. By combining real-time collaboration tools with asynchronous communication features, Zoom is well-positioned to become a leading provider of comprehensive communication solutions for businesses. The acquisition will undoubtedly drive innovation and growth in the industry.