The legodo acquisition gives Actuate the components to address the full spectrum of customer communication management capabilities. Actuate’s nascent CCM offering is now augmented by legodo's social and mobile features.
On 5 February 2014, Actuate, which primarily focuses on business intelligence (BI) capabilities, announced that it has acquired the Karlsruhe, Germany-based customer communications management (CCM) software vendor legodo. Financial terms of the deal were not available.
CCM software enables organizations to create, personalize and deliver communications to customers or constituents more effectively through any output channel. Actuate's acquisition of legodo exemplifies the trend toward mergers and acquisitions as CCM software providers look to grow market share by closing gaps in their offerings or by expanding into adjacent market segments.
The latter is the case with Actuate, which until recently focused on BI solutions and is now shifting its strategy to expand further into CCM. This deal and Actuate's previous acquisition of the Xenos output management technology give it the components of a full CCM solution, partly by strengthening its interactive customer communications and its integration with CRM applications, such as those offered by Oracle (Siebel and CRM On Demand), SAP, salesforce.com and SugarCRM. Customers want access to their content on their preferred networks and devices, and increasingly prefer mobile and social networking environments. Legodo brings some strong capabilities around mobile and social support to Actuate's archiving, output and analytics capabilities.
The deal will benefit from the two vendors' complementary strengths. The small regional European provider legodo offered strong technology, but it had limited resources to expand geographically. Actuate's nascent CCM offering, BIRT Content Services for Customer Communications Management leveraged its transformation, output management and archiving products, but it needed stronger document composition and multichannel capabilities. The combined offering will be in a stronger position to compete against more mature CCM vendors, like HP, Adobe and Pitney Bowes, as well as against emerging players like Inventive Designers and Xpertdoc.
Legodo customers: Revisit the merger in six months, with an eye to adding complementary Actuate capabilities in analytics and archiving if it has gone well. Ask at that time about planned investments and timelines for the functions that matter most to you. Until then, watch closely for changes in your support experience and relationship with sales.
Current and prospective Actuate customers: Consider Actuate as a potential provider for CCM in combination with analytics, but vet the maturity of the offering and assess the overall vision and road map going forward. Investigate the feasibility of legodo’s social and mobile capabilities as they are integrated into BIRT.