Pivotal is attempting to plug a gap in its mid-market CRM application suite by acquiring marketing automation vendor, MarketFirst Software, in an all-stock transaction.
MarketFirst is a privately-held company based in Mountain View, California and sells packages to help customers such as Pharmacia and Sharp Electronics undertake marketing campaigns and boost brand awareness.
Bo Manning, Pivotal’s president and chief executive, said: “Mid-sized enterprises are taking a new, more pragmatic marketing approach – the days of massive marketing budgets and vast ad buys are gone.”
“They are focused on delivering fast, measurable business results and are leveraging affordable marketing automation technologies to target well-defined markets with precision. These companies are using marketing automation as part of an overall CRM strategy to steal market share from larger, slower competitors,” he added.
Pivotal believes the purchase will enable it to qualify leads better and provide a more effective bridge from marketing to sales, which has traditionally been a weak spot of its product line.
Under the terms of the deal, which is expected to close later this month, the firm will issue 725,000 common shares, which amounts to a stake of less than three per cent of the company, in exchange for all of MarketFirst’s issues and outstanding securities.