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ServiceSource Acquires Scout Analytics

SERVICESOURCE

ServiceSource (SREV), whose stock has been up ~40% in the last twelve months and provides recurring revenue management software for businesses, has acquired Scout Analytics, a Seattle-based provider of predictive analytics for subscription businesses.  They paid $32MM in cash.

ServiceSource says that the acquisitions doubles its addressable market to over $600Bn in recurring revenue opportunities.  Scout Analytics manages over $3.5Bn in recurring revenue, and the acquisition will grow the business to over 200 customers and $14Bn, enter new markets, and offer recurring revenue management services to subscription and traditional license businesses.   Additionally, Scout Analytics gives ServiceSource potential new customers in the consumer tech area that run on a recurring revenue model. Scout Analytics currently analyzes usage from ~25MM subscribers on more than 400MM devices daily for customers in the SaaS, information services, and digital media industries.

“Scout Analytics significantly expands our reach into the fast-growing SaaS market, while creating new opportunities in B2B subscriptions for information services and digital media. And, with the addition of sophisticated predictive analytics, we can give companies the required top-to-bottom view of their customers’ data to grow through recurring revenue,” said ServiceSource chairman and CEO Mike Smerklo in a statement.

However, apparently some of Scout Analytics’s investors aren’t happy with the deal.  The Series A preferred stockholders filed a lawsuit claiming that the Board did not explore a financing offer from Catalyst Investors III that valued the Company at $40MM.  We’ll see what happens to the lawsuit.

Techcrunch article here.

Christopher Chiou

Bay Area based for 12 years and originally from the NYC area. My career has been spent as a technology dealmaker, advising clients on M&A and capital raising, and as a principal investor backing great companies and teams. I'm passionate about technology trends, traveling, sports, politics, Knowledge, and Duke basketball.

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