Kana and Broadbase Merger Bears Fruit in a Ripe CRM Market
- By John K. Waters
REDWOOD CITY, CA—The Customer Relationship Management (CRM) market was and
still is ripe for consolidation. So say analysts at AMR Research. They point
to the recent merger of two troubled companies as a harbinger of things to come:
CRM vendor Kana Communications and market analytics software maker Broadbase,
which joined forces last week in a stock deal reportedly worth about $75 million.
Redwood City, CA-based Kana Communications provides Web-architected enterprise
relationship management solutions (eRM). It delivers integrated e-business and
interaction applications, with a modular and scalable platform for both Internet
and Global 2000 companies. Headquartered a few miles to the south in Menlo Park,
CA, Broadbase Software provides customer-focused analytic, marketing automation,
and e-service software applications that analyze customer data from multiple
touch points, and use that information to execute marketing campaigns, improve
online merchandizing and content, increase site stickiness, and personalize
Between them, the two companies will have a base of more than 1,300 customers,
including American Express, Bank of America, Boeing, British Airways, Cisco,
Fidelity Investments, Ford, General Motors, Hewlett-Packard, MCI, Microsoft,
Nokia, Sprint and United Airlines. The merger agreement is subject to shareholder
approval and is expected to close in the third quarter. The combined company
will be called Kana Software. Chuck Bay is slated for the positions of president
and CEO, and Jay Wood will serve as chairman.
"Customers are demanding a relationship management solution that creates extraordinary
relationships," said Jay Wood in a media release. "This requires the combination
of analytics, knowledge, marketing, and service with a scalable e-Business platform.
When we look at the combined strengths of the Kana and Broadbase product offerings,
we have a unique and unbeatable eRM [Enterprise Relationship Management] solution."
John K. Waters is a freelance writer based in Silicon Valley. He can be reached