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

SAP's acquisition of Emarsys marks a significant step in enhancing its Customer Experience portfolio. By integrating Emarsys' omnichannel customer engagement platform, SAP aims to deliver hyperpersonalized interactions across various channels. This strategic move is expected to set new standards in digital commerce management, offering businesses more robust tools for personalized customer experiences.

What Is Emarsys?

Founded in 2000, Emarsys is an omnichannel customer engagement platform that offers AI-powered tools for personalized marketing. Its core services include AI marketing, customer data integration, marketing automation, and omnichannel marketing. Emarsys stands out with its AI-driven personalization, comprehensive data integration, and scalability. The platform ensures consistent messaging across various channels and has been recognized as a leader in the Gartner Magic Quadrant for Personalization Engines for five consecutive years.

Who Acquired Emarsys?

SAP is a market leader in enterprise application software, providing comprehensive solutions that help businesses of all sizes and industries operate more efficiently. Key products include SAP S/4HANA Cloud for ERP, SAP SuccessFactors for human capital management, and various tools for CRM, financial management, and supply chain management. SAP's influence is underscored by its consistent recognition in the Gartner Magic Quadrant for Digital Commerce, reflecting its pivotal role in driving business innovation and growth.

When Was Emarsys Acquired?

SAP announced its agreement to acquire Emarsys on October 1, 2020, and completed the acquisition on November 5, 2020. This acquisition occurred during a period marked by a significant shift towards digital transformation and personalized customer engagement, driven in part by the COVID-19 pandemic. Businesses were increasingly focusing on enhancing their digital and omnichannel strategies to meet evolving customer expectations, making the timing of this acquisition particularly strategic for SAP.

Why Was Emarsys Acquired?

• Market Expansion: The acquisition of Emarsys by SAP represents a strategic move to expand SAP's market presence in the omnichannel customer engagement space. Emarsys has over 1,500 customers worldwide and more than 800 employees across 13 offices, including locations in London, Berlin, Sydney, Budapest, and a U.S. headquarters in Indianapolis. This acquisition will integrate Emarsys' operations into the SAP Customer Experience business unit, thereby expanding SAP's reach and capabilities in the digital commerce and customer engagement markets.
• Technology Integration: The integration of Emarsys' customer engagement platform with SAP's existing technologies, such as SAP S/4HANA and Experience Management from SAP and Qualtrics, will create new opportunities for delivering hyperpersonalized, omnichannel engagements. This integration aims to connect front-office data with back-office capabilities and individual customer feedback, enabling brands to offer compelling customer journeys and cater to individual customer expectations. The combined technologies will support a 'commerce anywhere' strategy, allowing for personalized digital commerce experiences across all channels.
• Competitive Advantage: The acquisition of Emarsys provides SAP with a competitive advantage by enhancing its Customer Experience solutions. Emarsys' innovative and easy-to-use cloud-based marketing platform allows for personalized customer interactions across various channels, including email, mobile, social, SMS, and the web. By linking commerce signals with back-office data and activating the preferred customer engagement channels, SAP can offer a unique and consistently personalized customer experience. This capability is expected to set SAP apart from competitors by providing a holistic view of each consumer and connecting digital engagement data with supply chain data in real time.

Acquisition Terms

• Acquisition Price: The terms of the transaction, including the acquisition price, were not disclosed.
• Payment Method: The payment method for the acquisition is not mentioned.
• Key Conditions or Agreements:
  • The transaction is subject to regulatory approval.
  • The deal is expected to close in the fourth quarter of 2020.
  • Emarsys' operations will become part of the SAP Customer Experience business unit.
  • The acquisition aims to integrate Emarsys' customer engagement platform with SAP's existing technologies to deliver hyperpersonalized digital commerce experiences.

Impact on Emarsys

The acquisition of Emarsys by SAP has led to significant changes in operations and management. Emarsys' operations are now integrated into the SAP Customer Experience business unit, overseen by Bob Stutz, President of SAP Customer Experience. This integration aims to create a more comprehensive product portfolio by combining Emarsys' omnichannel customer engagement platform with SAP's existing technologies. The goal is to enhance SAP's ability to deliver hyperpersonalized, omnichannel engagements, meeting customers on their preferred channels and terms.

Regarding product offerings, the integration of Emarsys' cloud-based marketing platform with SAP's solutions is expected to provide a foundation for personalized customer interactions across various channels, including email, mobile, social, SMS, and the web. This move is anticipated to benefit customers by offering more relevant and impactful engagements. While specific employee reactions are not detailed, executives from both companies have expressed optimism about the synergies and future benefits. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.