NICE acquires Fizzback in $80m cash deal
Advent Venture Partners sees 5X return on investment
London-based customer experience software provider Fizzback has been acquired by NICE Systems in a deal worth around $80m in cash.
It is thought that the deal will be completed in the fourth quarter of 2011, and will bring $20m of new revenue to Israeli firm NICE, which specialises in the development of consumer analytics tools.
NICE hopes that, by marrying Fizzback’s proprietary ‘Voice of the Customer’ feedback technology with its own customer analytics tools, it can ultimately create a complete customer experience management solution.
The deal follows a prolonged period of growth for Fizzback, which was set up by software entrepreneur and investor Rob Keve in 2004, and allows clients to send feedback requests to their customers in the immediate aftermath of a transaction.
The company now processes more than 150 million customer feedback responses a year, and its stable of clients includes blue-chips such as Tesco, BT and Virgin Media.
Keve – who initially chose to start up in London because it enabled him to find native speakers for a multitude of languages – said of the deal:
“We are looking forward to combining (our) capabilities with NICE’s real-time, cross-channel analytics to provide both NICE and Fizzback customers greater access to even broader capabilities with a more complete VoC solution.”
The deal represents a 5X return on investment for Advent Venture Partners, which provided Fizzback with early-stage funding in 2006 and consequently became the company’s largest shareholder.
Mike Chalfen, general partner at Advent Venture Partners, said: “We back outstanding founder entrepreneurs to scale capital efficient businesses. We’re proud to have worked closely with Rob to build Fizzback to meaningful scale.
“Fizzback has blue-chip customers in three continents that use the service to collect and analyze over 150 million ‘Fizzbacks’ requests. That’s an amazing achievement with only $8m of invested capital.
“Fizzback’s combination with NICE to create a global leader is a hugely exciting step for the company.”