Salesforce competitor SugarCRM acquires its fourth startup
By Michelle Goodman
Contastic, which was developed in Silicon Valley, employs natural language processing to identify hot topics in conversations occurring via email, social media, CRM platforms and other digital correspondence. A salesperson or other CRM user could then zero in on these topics when conversing and trying to seal a deal with a particular contact. According to SugarCRM, past Contastic customers included users at Tesla and Splunk.
SugarCRM CEO Larry Augustin said the company plans to use Constastic's NLP technology to analyze data on the Sugar platform to recommend customized next steps a user can take with a particular contact. Augustin also said that SugarCRM will use Contastic's technology to increase the intelligence of future releases of its CRM platform.
SugarCRM is proving itself a formidable contender in the CRM platform marketplace. This is the third acquisition the Silicon Valley company has made in the past year and the fourth startup it has acquired since opening its doors in 2004.
Last March, the company acquired Stitch, a developer of productivity-enhancing personal assistant technologies. In 2015 SugarCRM also acquired process management and workflow technology from ProcessMaker, though it did not acquire the company. The CRM platform's first acquisition was iExtensions, which it bought in 2011, according to TechCrunch.
SugarCRM did not disclose any financial terms of its deal with Contastic. The company did say that Cy Khormaee, Contastic's CEO, has joined SugarCRM as director of product management for predictive analytics. In this role, Khormaee will continue to build AI technology that translates data into recommendations that SugarCRM users can implement in their correspondence with contacts.
- see TechCrunch's report of the deal
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