Zoom has announced its plans to acquire Workvivo, an Irish startup that aims to improve companies’ internal communications and culture. While Zoom specializes in real-time communication, Workvivo focuses on fostering employee engagement through asynchronous communication tools such as an activity feed, people directory, surveys, and a channel for company communications. Workvivo, founded in 2017, has an impressive list of customers including Amazon, Ryanair, and Bupa.
It has raised nearly $40 million since inception, including a $22 million Series B led by Tiger Global last year. Interestingly, Zoom founder Eric Yuan made an angel investment in Workvivo in 2019, making this announcement a little less surprising. The terms of the deal were not disclosed.
Strengthening Internal Communications and Company Culture
Zoom has announced its acquisition of Workvivo, a six-year-old Irish start-up focused on improving internal communications and company culture, for an undisclosed amount. While Zoom specializes in real-time communication, Workvivo is more focused on fostering employee engagement and features an activity feed, people directory, surveys and a conduit for critical company communications.
Workvivo reported 200% growth in ARR in 2020, and this, along with Zoom’s desire to help businesses retain talent and build a strong company culture, is said to be the reason for the acquisition. Workvivo has an impressive roster of customers, including Amazon, RyanAir and Bupa, and the founders and entire team will join Zoom once the deal closes.
Zoom has only made four previously known acquisitions in its 12-year history, but when it does, there is usually a clear strategic strand running through it. The company expects the Workvivo transaction to close by the end of next month, after which it will integrate Workvivo’s features into Zoom.