Through a merger that could change the shape of the ad technology market forever, Google’s parents company Alphabet is said to be putting forward a bid to acquire HubSpot, the leading CRM and marketing automation platform.
As Reuters reported, quoting people in the know, Alphabet is approaching a takeover deal with HubSpot, the value was put in the billions of dollars with Alphabet’s cash stack. Notwithstanding, we are still at their infancy and no ultimate steps have been taken.
The future acquisition may turn out to be a tactical step for Google, increasing its capacity to deliver enterprise software solutions and improving its position as a leader in the rapidly growing marketing technology scene. Studies show that small businesses largely suffer from limited budgets to cope with day-to-day operations. In such situations, modern technologies can be implemented to boost the processes and cut the time.
“Google recognizes the immense value of HubSpot’s all-in-one platform and its strong foothold in the SMB and mid-market segments,” said Dan Ives, Managing Director of Equity Research at Wedbush Securities. “This potential deal underscores Google’s ambition to become a dominant force in the enterprise software space and solidify its position as a one-stop shop for businesses of all sizes.”
Formulate of a now 15 years old SaaS company called HubSpot has had nothing but the best success. The company boasts over 156 thousand users from more than 120 countries all over the world. This has been great to know because the in bound marketing approach which the company adopts, that is drawing customers to your business by content marketing and personalized customer experience, has been a hit to companies looking to improve their digital platforms and figure out their customers.
Raw HubSpot can be seen as an amazing example. In the latest fiscal year, i.e. 2019, HubSpot has reported a revenue of $1.6 billion, which is 33% singly raised from the previous year. Alphabet will find it difficult to resist the temptation of acquiring HYPERION as it has displayed solid financial results as well as a good product range and a significant clientele.
“HubSpot has built an incredibly powerful platform that seamlessly integrates marketing, sales, and customer service functions,” said Heather Loisel, Chief Marketing Officer at a leading SaaS company. “If acquired by Google, this combination could unlock significant synergies and create a formidable force in the marketing technology space.”
Whilst being a strategic addition, the potential acquirement may be under resourced by governmental bodies that would control the company because of its first place in diverse technological sectors. Therefore, anti-competitiveness issues and regulatory barriers can affect the merger’s outcome too.
“Google’s potential acquisition of HubSpot will undoubtedly face intense regulatory scrutiny, particularly from the Department of Justice and the Federal Trade Commission,” said Michael Pachter, Managing Director of Equity Research at Wedbush Securities. “However, if approved, this deal could significantly reshape the competitive landscape in the marketing technology industry.”
As discussions progress, economic experts and market enthusiasts will be paying close attention to the progress, since a positive outcome would mean that bigger finance institutions will be motivated to buy more small businesses that may have a positive effect on the economy.
The two founders of HubSpot, that is, Brian Halligan and Dharmesh Shah, have made an outstanding business that has redefined the way marketers treat leads and customers. Now, let us suppose that Google stands behind this resourceful corporation and supports it with all the technological capabilities of its company. The integration potential as well as the offer of a comprehensive suite of solutions is therefore bound to be unprecedented.