08 Nov 2016 | 09.22 am
Datahug Acquired By CallidusCloud For €12m
Big payday for founders Ray Smith and Connor Murphy
08 Nov 2016 | 09.22 am
Datahug, an Irish software company headquartered in Dublin, has been acquired by CallidusCloud, another software business headquartered in Dublin – Dublin, California. The acquisition was concluded for just shy of €12 million in cash.
Datahug was founded in 2010 Connor Murphy and Ray Smith. Its main product is a sales forecasting and pipeline management solution, built in Salesforce, which allows people within an organisation to see if any co-workers can hook them up with a connection to a potential customer lead or someone they’d like to make contact with.
A 2013 EY Entrepreneur of the Year finalist, Datahug attracted significant investment. Its most recent account filings, for 2014, show that Datahug had accumulated losses of €5m and total year-end liabilities of €4.9m. In December 2014, the business had a net deficit of €3.4m.
Datahug targeted the US market for growth, opening headquarters there in 2013. To help fund the expansion, Datahug raised around €3m from investors that included Salesforce and Silicon Valley VC firm DFJ Esprit. In 2011, Bill McCabe’s Oyster Technology Investments invested €1m and Silicon Valley angel investor Ron Conway also backed the business.
Since 2013, some €2m in additional fundraising was secured by Datahug from investors that included Enterprise Ireland, and additional funds from DFJ Esprit.
Smith (36) and Murphy each have a 16% shareholding in Datahug Ltd, so their pre-expenses gross from the sale should be around €1.9m each.
Walter Hobbs, Executive Director Investment and Finance, Enterprise Ireland commented: “Enterprise Ireland has supported Datahug since the year the company was founded, with Enterprise Ireland subsequently making an equity investment in the company on its Series C funding round and becoming a minority shareholder.
“A key role of Enterprise Ireland is to work with and invest in start-up companies with international potential. Datahug has also engaged with Enterprise Ireland’s overseas offices in Silicon Valley and Toronto as part of the company’s international growth strategy”.
CallidusCloud, established in 1996, specialises in cloud-based sales, marketing, learning and customer experience solutions. Leslie Stretch, president and CEO of the company, said: “Datahug’s unique, patented technology delivers rich, predictive analysis of sales pipelines in a visually stunning way.
“Being able to better predict the outcomes of sales cycles and identify the right sales opportunities means big value for our lead to money customers. Their fast and easy to use solution leverages CRM, commissions, CPQ, service and customer feedback data sources to bring forecasting to life in a practical way that is easy to understand and visualise.”
Datahug CEO Ray Smith commented: “CallidusCloud brings a wealth of experience in our target markets and a loyal customer base who will be keen to tap into the value of predictive analytics that accelerate sales. We’re looking forward to working with the team to deliver unique value to the large addressable market for sales force automation and acceleration.”
Datahug will now form the CallidusCloud Predictive Analytics, AI and Machine Learning innovation centre. Among Datahug’s customers are Nitro, McCann Fitzgerald and Scottish Equity Partners.
Photo: Datahug founders Ray Smith (left) and Connor Murphy