Drift Acquisition: Key Details, Impact, and What Comes Next

Salesloft's acquisition of Drift marks a significant development in the sales and marketing technology landscape. By combining Salesloft's AI-powered Revenue Orchestration Platform with Drift's Conversational AI capabilities, the merger aims to create a comprehensive solution for the entire buyer journey. This strategic move is expected to enhance customer engagement and streamline sales processes, positioning the combined entity as a formidable competitor in the industry.

What Is Drift?

Founded in 2015, Drift specializes in Conversational AI and sales engagement solutions. Its core products include Drift Conversational Marketing, Drift Conversational Sales, and Drift Automation, which facilitate real-time customer interactions and streamline sales processes. A key differentiator is its ability to engage in-market buyers early, leveraging AI to prioritize and act on buyer signals effectively. This unique approach positions Drift as a leader in enhancing customer engagement and driving revenue growth.

Who Acquired Drift?

Salesloft is a prominent provider in the sales technology industry, specializing in a Revenue Orchestration Platform designed to boost revenue growth and operational efficiency. Key products include Cadence for pipeline management, Conversations for coaching, Deals for forecasting, and Rhythm, an AI-driven signal-to-action engine. Recognized as a leader in its field, Salesloft's platform is trusted by over 5,000 companies, including major firms like 3M and Wrike, underscoring its significant market influence.

When Was Drift Acquired?

Salesloft acquired Drift on February 13, 2024. This acquisition comes at a time when the industry is witnessing a wave of strategic consolidations driven by private equity firms. These mergers aim to create larger, more competitive entities capable of challenging industry giants like HubSpot and Salesforce. The acquisition is expected to enhance the integration of sales and marketing efforts, addressing the disconnect in the buyer journey and leveraging AI to optimize revenue outcomes.

Why Was Drift Acquired?

• Market Expansion: The acquisition of Drift by Salesloft significantly broadens their market reach. By combining Salesloft's revenue workflow platform with Drift's Conversational AI capabilities, the merged entity now serves nearly 6,000 global customers across multiple locations, including Atlanta, Boston, and London. This strategic move positions them to challenge industry giants like HubSpot and Salesforce, enhancing their influence within the SaaS industry.
• Technology Integration: Integrating Drift's buyer engagement platform with Salesloft's revenue workflow platform creates the first AI-Powered Revenue Orchestration Platform. This comprehensive solution aims to serve the entire buyer journey by providing personalized, omnichannel experiences powered by AI. The merger allows for deeper integration, particularly with Drift’s Site Concierge product, enhancing Salesloft's existing capabilities and driving further product innovation.
• Competitive Advantage: The acquisition strengthens Salesloft's position against competitors by offering a unique combination of buyer and seller engagement tools. This integration enables more personalized and contextual buyer experiences, increasing trust and conversion rates. The combined expertise and resources of both companies drive continued innovation, providing a significant competitive edge in the market against players like 6sense, Demandbase, and Apollo.io.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The payment method was not specified.
• Key Conditions or Agreements:
  • Drift customers will experience no impact on the product or pricing.
  • Continued support via existing channels for Drift customers.
  • Ongoing delivery of innovations to both Salesloft and Drift platforms.
  • Commitment to an open partner ecosystem, maintaining integrations with other sales engagement and conversation intelligence platforms.
  • Vista Equity Partners holds a majority stake in both Salesloft and Drift, enabling the merger.
  • Drift will continue to be sold separately, with deeper integration to support sellers better.
  • Salesloft and Drift already have 250 joint customers and over 6,000 combined customers, indicating potential for cross-selling and growth.

Impact on Drift

The acquisition of Drift by Salesloft has led to notable changes in operations and management. The merger, under the majority ownership of Vista Equity Partners, has created a unified entity with nearly 6,000 global customers and employees spread across multiple locations, including Atlanta, Boston, and London. This strategic move aims to enhance the integration of Drift’s conversational marketing and sales solutions with Salesloft’s AI-powered revenue orchestration platform, providing a more connected and personalized buyer journey. Despite these changes, Drift will continue to operate as a separate entity, ensuring continuity for its existing customer base.

In terms of product offerings, the merger has resulted in a more robust and comprehensive platform. Drift’s products, such as the Site Concierge and Bionic Chatbots, will be integrated into Salesloft’s platform, enhancing its AI-driven workflow and prioritization capabilities. This integration aims to deliver a seamless omnichannel experience for buyers, driving higher quality pipeline and revenue outcomes. Employee reactions have been mixed, with some pride in Drift’s achievements and challenges faced, while customer reactions have generally been positive, appreciating the enhanced capabilities and continued support.

For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.