Let’s call it the match maker’s response to extreme nichification. Romancing the niche is what generalists are doing for martech to create greater business viability within the sector. Ever since Scott Brinker’s 2016 Martech Landscape Supergraphic was released in March, it’s been clear that vendors would have to work across multiple categories for new tool development and servicing to remain viable long term. Convergence and consolidation were the predictions of the day.
And has there been that predicted convergence and consolidation?
On May 31 alone, Open Text announced its plan to sell off $600 million in senior debt notes to invest in acquisitions ClickDimensions, a marketing automation firm announced that it had received investment in Accel-KKR, the same private equity firm that acquired Episerver and Ektron, two CMS vendors two years ago. The very same day, Vista Equity acquired Marketo.
At their heart, equity partner investment firms are generalists. Their range of expertise is broad expands past the typical tech and marketing knowledge base. Those with the ability to bring together niche interests are creating opportunities for both convergence and consolidation. I suspect that we are entering a season of romancing the niche and that these types of deals will be the feature of the summer of 2016.
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