Netherlands-based CM.com, cloud software for conversational commerce, has agreed to acquire Tilburg-based consumer AI technology company Building Blocks.
The acquisition will be paid for by a combination of cash and equity consideration. The financial details of this acquisition have not been disclosed.
The announcement comes five months after CM.com acquired Utrecht-based TraceDock, a privacy-friendly first-party data collection service.
Building Blocks: What you need to know
Founded in 2013, Building Blocks combines data science software with data science services, enabling its customers to build relevant and personalised interactions across their businesses.
The company’s Consumer AI solutions focus on consumer guidance, consumer engagement, and consumer care.
Building Blocks’ customer portfolio includes renowned brands such as Samsung, Basic-Fit, Corendon, and Sligro. Currently, the company has offices in the Netherlands and employs 40 people.
Alexander van Eerden, CEO of Building Blocks, says, “In the past 8 years we completely focused on delivering value to our clients. That’s what we see at CM.com as well. From a market perspective, more and more companies active in the consumer space are using AI to improve their customer journeys, revolutionise how they interact with consumers, and deliver more compelling experiences. Combining the CM.com solutions with our data science software and data science services creates a highly competitive SaaS-based product for any customer that is maximising consumer value. In addition, the scale and international footprint of CM.com will enable us to accelerate our growth ambitions and get to our ambition to positively impact 1 billion people with our AI.”
Why this acquisition?
CM.com claims it acquired Building Blocks to take its conversational commerce to the next level.
Over the past three years, the Annual Recurring Revenue (ARR) of Building Blocks increased on average by 97 per cent per year and currently adds up to an ARR of approximately €4M.
As a result, the intended acquisition will support CM.com’s strategy to increase its ARR and core gross margin. Parties expect to complete the intended transaction in Q1 2022.
CM.com: What you need to know
Founded in 1999 by Jeroen van Glabbeek and Gilbert Gooijer, CM.com connects businesses to people and people to businesses via telecom operators, worldwide payment providers, and messaging channels.
The company’s platform offers solutions needed for mobile engagement and interaction with its target audience. It includes SMS, Over The Top (OTT) (e.g. WhatsApp Business, Apple Business Chat, Google RCS, Facebook Messenger, and Viber), Voice API, and SIP.
These messaging channels can be combined with cloud platform features, like Ticketing, eSignature, Customer Contact, identity services, and a Customer Data Platform.
Jeroen van Glabbeek, CEO CM.com, says, “We have been working alongside Building Blocks on various joint customer accounts. As a result, we got to know the team and their AI technology very well. We are convinced that incorporating the Building Blocks’ portfolio into our mobile cloud solutions makes perfect sense and will further empower customers to turn consumers into loyal fans.”
“The acquisition offers us multiple advantages. It adds high-value consumer AI functionalities to our entire product portfolio and extends our customer base for enhanced up and cross-selling opportunities. In addition, their business model provides an extra boost to the development of our recurring revenue base in line with our ambition to gradually move to a more SaaSdriven business model,” Glabbeek added.