In an all Estonian deal, business SMS platform provider TextMagic AS has acquired website building platform Voog in an all cash deal worth €1.1 million. The deal marks the first acquisition by Textmagic as it begins to build out a portfolio of SaaS products, vying for the position of a market leader.
Voog CEO Henn Runnel will continue to lead Voog, and its existing team, with plans for a recruitment drive for additional developers, marketers and product specialists to support company growth.
"Our goal is to replicate the success of TextMagic's entry into the US market with our combined strengths in software and marketing. Currently, 90% of our revenue originates from Estonia, whereas TextMagic has achieved nearly 70% of its revenue from the US market," says Runnel.
"The acquisition of Voog complements our vision to deliver user-friendly, efficient and versatile software solutions for various businesses. The Voog acquisition comes as our debut M&A deal, with a strategic focus on building, buying and managing a diverse SaaS products portfolio to strengthen our market position, particularly in the US. This development marks a significant step towards the company's vision of becoming an exceptional B2B SaaS solutions group. Alongside Voog, we anticipate growth from the launch of the Touchpoint customer support software and a new version of TextMagic’s text message communication platform in the latter half of this year," says Priit Vaikmaa, CEO of TextMagic.
Voog originated from the Fraktal digital design agency and was separated into Edicy OÜ in 2011. The Textmagic deal includes 100% purchase of Edicy OÜ's shares from 16 shareholders. Some of the shareholders are current employees, who had just received shares through the stock option program. TextMagic offers stock options to all employees.