Xchange has bought Knowledge Stream Partners, an eCRM software company based in Boston for $52 million. Through the acquisition, Xchange gains a team of eCRM experts who have already begun working on logic software and expanding Xchange’s eCRM analytics service.
Knowledge Stream specializes in software development for advanced data mining and online/offline analytics. Clients have included Chase Manhattan Bank, Citigroup, Equitable, Banamex, First USA, First Union and Credit Suisse.
"Because eCRM is an emerging industry, finding experienced, qualified talent is our number one challenge," remarked Dan Haley, Xchange’s chief deal officer. "The acquisition of Knowledge Stream provides us with world-class people who know eCRM analytics inside and out.” Finding professionals with expert capabilities in cross-channel synchronization and decisioning logic software is particularly tough, said Haley, since the technology was just introduced to the market by Xchange in late 1999.
Knowledge Stream Partners' founder and CEO, Robert van der Hooning, will join Xchange's Solutions Group. Van der Hooning is an eCRM domain expert, and has taught courses on the subject at the Kellogg Graduate School of Management at Northwestern University, the University of Chicago and the prestigious International Bankers School.
"We think this is a perfect match," said van der Hooning. "Xchange is regarded as a de facto leader in eCRM solutions, and Knowledge Stream has built a strong consulting practice around the hottest areas within eCRM: cross-channel customer analytics, real-time decisioning and customer profitability. Knowledge Stream's consulting know-how and Xchange's implementation skills are a very powerful combination, and a compelling offering for businesses looking to implement Web-based eCRM."
All of Knowledge Stream's developers and consultants have joined Xchange and moved to its Boston headquarters. Among them is Knowledge Stream's chief scientist, Gregory Piatetsky, the author and well-known eCRM consultant who publishes the data-mining Web site www.kdnuggets.com.