Jive, a community collaboration software company that was one of the biggest Enterprise 2.0-era success stories, going public in 2011, announced today it had agreed to be acquired by ESW Capital’s Wave Systems for $462 million. It will become part of the Aurea family of companies.
In the end, it was a kind and healthy exit for Jive shareholders. ESW paid $5.25 a share to purchase the company, representing a 20 percent increase over the average of Jive’s closing stock price for the three months ending on April 28, 2017. It had closed on Friday at $5.05 a share. Needless to say, Jive’s board jumped at the offer and voted unanimously to approve the deal.
The plan is to integrate Jive into Aurea’s customer experience management platform. The acquisition gives Aurea a tool for creating internal and customer-facing communities, a key piece in today’s customer service environment. It also gives them access to Jive’s customer base, which includes T Mobile, Schneider Electric, McAfee and EMC.
Scott Brighton, CEO of Aurea sees the community component strengthening the overall platform. “Jive, in combination with Aurea, enables us to bring customer experience and employee and customer engagement together,” he said in a statement.
It would appear with this sale, we are seeing the official end of the Enterprise 2.0 era, which had its hey day in the 2006-2012 timeframe. Jive along with Yammer, Socialcast, Socialtext and a host of others came to prominence during this time and brought a lot of promise of changing the way businesses communicate internally and externally.
It all began in 2006 when then Harvard professor Andrew McAfee (he has since moved onto MIT), coined the term Enterprise 2.0. Instead of getting bogged down in long email threads, employees could talk directly to one another in teams and communities via a more natural communications interface. They could also create their own content with blogs, wikis and other tools instead of relying on a group of experts to publish the content for them. Eventually this would extend outside the company as well.
The era peaked when Jive went public in 2011 and Yammer was sold to Microsoft for $1.2 billion in 2012, representing two of the biggest success stories of the time.
A couple of years later Slack was released and has taken the enterprise by storm. It, along with the recent release of Workplace by Facebook and Microsoft Teams, has created a new generation of more modern tools.
Alan Lepofsky, an analyst with Constellation Research who covers collaboration and community in business sees the era ending, not so much because of the recent additions, but because the biggest companies finally caught up with Enterprise 2.0 functionality including Microsoft, Salesforce, Cisco and IBM.
“The big guys caught up and filled the gap that the original e20 vendors temporarily filled,” he said. As for Aurea, Lepofsky sees it giving them a tool to compete with Salesforce Communites in the Customer Experience space.
Perhaps it was inevitable that Jive one of the last of that original wave of companies standing would be sold. It’s actually a good match on its face — a good deal for Jive shareholders, while giving Aurea a solid tool community and collaboration for its platform.
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