Social media management business Hootsuite has acquired artificial intelligence chatbot company Heyday for $60 million.
Vancouver-based Hootsuite announced the deal, saying it wanted to buy Montreal-based Heyday because the eCommerce sector is rapidly moving onto social and messaging platforms and the purchase will give it more opportunities to help brands elevate their customer experiences.
“Social is the new interface of commerce and customer care. Modern day brands have to manage a multitude of daily interactions and conversations at scale — which is impossible to do without AI automation,” said Hootsuite chief executive Tom Keiser, in a release.
“With the acquisition of Heyday, Hootsuite will now give AI capabilities to marketing, sales and support teams globally so they can deliver exceptional experiences at scale.”
Expanding its services is key for Hootsuite because the social media management space has become increasingly crowded in recent years as platforms have realized the value in social media management and began offering their own scheduling and analytics tools.
Also Read: AI Risks We Should Know About
Hootsuite rivals like Buffer, Sprout Social and Later have also sprung up and tried to corner the same market.
Hootsuite’s acquisition could help it stave off some of the competition and draw in clients attracted to Heyday’s software.
The company said Heyday and Hootsuite will operate as separate entities, but Hootsuite plans to use Heyday’s AI for its own products.
Hootsuite, which was founded in 2008, said the deal closed last week and will help it build relationships with a slew of Heyday customers, including Lacoste, Decathlon, Cirque du Soleil and Danone.
