Vector Capital to merge Showpad & Bigtincan in global AI push
Vector Capital has announced that it has entered into an agreement to acquire AI revenue enablement technology firm Showpad and will combine it with Bigtincan under the Showpad brand.
The acquisition is part of Vector Capital's strategy to build a comprehensive AI-powered revenue enablement platform, following its purchase of Bigtincan Holdings earlier in the year. The newly combined company will maintain the Showpad brand and aims to deliver revenue enablement solutions to a global client base, leveraging broad geographic coverage and combined research and development capabilities.
Showpad, which is headquartered in Chicago and Ghent, serves customers in over 50 countries. Its clients include multinationals such as Coca-Cola, Dow, DuPont, GE Healthcare, Kaiser Permanente and Schneider Electric. The company has been recognised as a leader in multiple categories of The Forrester Wave and as a 'Customers' Choice' for Revenue Enablement Platforms on Gartner Peer Insights.
Bigtincan has achieved the status of a five-time leader in The Aragon Research Globe for Sales Enablement Platforms and is known for its AI-powered sales enablement solutions. The company's customer list includes Abbott, AT&T, Clorox, Merck, Winnebago and 100 companies from the Fortune 500.
Transaction details
The acquisition agreement details that Vector Capital will integrate Showpad and Bigtincan's operations, research, and customer engagement under a single brand. The combined company will focus on delivering end-to-end AI-powered solutions for all aspects of buyer and seller engagement. Insight Partners, one of Showpad's major investors, will roll over its entire investment into the combined entity.
Completion of the acquisition is subject to regulatory approval and other customary conditions. The companies have not disclosed financial terms of the transaction, which is expected to close in 2025.
Market perspective
"The combination of Bigtincan with Showpad brings together best-in-class innovation and market leaders with thousands of customers," said Amish Mehta, Chief Investment Officer and Managing Director at Vector Capital. "The combined company will lead the digital and AI-fueled buyer and seller engagement and drive a new generation of experiences that people and brands love."
The global revenue enablement market is projected to grow significantly in the coming years, with estimates suggesting it could reach $12 billion by 2030. The combined strengths of Showpad and Bigtincan are intended to position the new entity as a significant player within this sector.
Jim Lundy, Founder and Lead Analyst at Aragon Research, commented on the industry implications of the deal. "The merger of Showpad and Bigtincan represents a watershed moment for the sales enablement market," he said. "By uniting complementary strengths in content, readiness, and AI, the combined company is poised to deliver on the market's unmet demand for AI-centric sales enablement platforms that are easier to deploy, simpler to use and more impactful for revenue teams worldwide."
Hendrik Isebaert, CEO of Showpad, stated, "Our unwavering focus on driving success for customers fueled a record-breaking year of growth for Showpad in 2024. Together we will deliver a breadth of flexible solutions and an incredible team to help customers engage with buyers in new and creative ways they never thought possible."
Jim Hopkins, Chairman of Bigtincan, highlighted the role of technology in the changing landscape. "Evolving preferences and rapid technology advancements are aggressively transforming buying and selling behaviors. We invested early and heavily in AI, and our combined global R&D resources will accelerate innovation so customers can rapidly reap the benefits of AI and emerging future innovations."
Rob Amen, Managing Director at Vector Capital, commented, "Vector Capital has a long history of building category-defining technology companies. Both companies bring impressive industry expertise and commitment to excellence. Together, they will continue to drive the future and set industry standards and best practices globally."
Transaction advisors
Industry advisors involved in the transaction include Sidley Austin as legal counsel, Deloitte as tax advisor and Alvarez & Marsal as financial advisor for Vector Capital. Showpad is being advised by Cleary Gottlieb Steen & Hamilton as legal counsel and TD Securities as financial advisor.
The transaction is awaiting regulatory and customary approvals before closing. No further details on the transaction terms have been disclosed by the parties involved.
