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Why do companies like these get acquired?

by Michael Shaimerden

I was browsing on Crunchbase today and saw that Voog got acquired for over 1 million pounds by TextMagic. Voog is just a squarespace/wix type website builder, I fully know there are strategic reasons but I don't know what they would be, anyone has any insights on why broad products in saturated markets get acquired?

Michael Shaimerden's avatarMichael Shaimerden
on June 9, 2023
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  1. 3

    Usually talent acquisition, esp. if it is a small, talented team. Hiring is expensive. Hiring a team that can already work together is very expensive.

    lucgagan's avatar lucgagan
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    3 years ago
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  2. 2
    1. For the team.
    2. For the market share. Which might be small but, 1% here, 5% here and that's how big companies are getting bigger.
    3. If the acquirer is in a different market than the acquired, it's to add a complementary product under their belt, slowly creating a suite of products.
    ChrisTech's avatar ChrisTech
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    3 years ago
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