Employee Experience Merger Ahead as SocialChorus and Dynamic Signal Join Forces
SocialChorus and San Bruno, Calif.-based Dynamic Signal announced a merger on June 8 which will combine the two digital employee experience (DEX) SaaS providers. Sumeru Equity Partners (SEP), majority shareholders in San Francisco-based SocialChorus, will fund the merger through a significant new growth investment into the firm. SocialChorus CEO Gary Nakamura will lead the united company, with people from both companies rounding out the leadership team. Three Dynamic Signal board members, including Eric Brown, CEO of Dynamic Signal, will join the SocialChorus board of directors. Additional terms of the deal were not disclosed.
The two companies, previously competitors, are both known for their workforce communications platforms. SocialChorus last announced updates to its platform, FirstUp, in April. The Content Microapps product and new FirstUp Studio aim to improve content design and personalized content delivery and are expected this summer. Combined, the two companies "present a huge opportunity for growth and innovation on the journey to give customers what they need to create an unparalleled digital employee experience," said Nakamura in a statement.
After closing, the combined organization is expected to increase investments in product development and customer service innovation. The combined organization will continue to support solutions across their respective platforms and will serve more than 500 customers and reach over 15 million employees globally.
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The merger comes at a time of increased interest in the employee experience, as companies explore potential returns to the office. Workplace communications platforms and broader digital workplace tools showed dramatic growth as a result of the work from home mandates of the last 15 months. A December 2020 report by The Insight Partners estimates the employee communications market alone would grow from $739.4 million in 2019 to a $1.780 billion market by 2027.
The closing of the merger is expected in the third quarter and remains subject to customary regulatory and other approvals.