ServiceSource® (NASDAQ:SREV), the global leader in recurring revenue management, today announced that it has acquired Scout Analytics®, a leading provider of predictive analytics for subscription businesses. With more than $3.5 billion of recurring revenue under management, Scout Analytics extends ServiceSource’s reach into new markets while increasing its footprint to now $14 billion under management across more than 200 customer engagements. Together, the two companies offer a comprehensive recurring revenue solution for both subscription and traditional businesses. The transaction closed today and is expected to be accretive to non-GAAP EPS in 2015.
Recurring revenue is fast becoming a critical function for every company, spanning new subscription and cloud-based businesses, as well as established industries such as hardware, software, healthcare and industrials. As the “Internet of Things” connects businesses and people to a range of technology-enabled devices and cloud-based services, recurring revenue will play a pivotal role. As such, understanding how customers are using products and services is vital to today’s businesses, not just for customer success and retention, but also for accelerating recurring revenue growth and profits.
Scout® from Scout Analytics analyzes customers' subscription usage, spending, and other behaviors to align product and account management strategies and drive recurring revenue activities. With Scout, ServiceSource expands its customer success management capabilities to include actionable analytics based on actual customer usage. This enhances the ServiceSource solution for subscription customers through insights that support streamlined onboarding and adoption, and increased revenues through targeted upsells and cross-sells. ServiceSource plans to significantly invest in Scout Analytics’ business with additional R&D, sales and customer support resources.
The deal enables ServiceSource to deliver real financial benefits to current and prospective customers. Scout brings powerful capabilities for software-as-a-service (SaaS) customers to proactively identify at-risk customers, optimize pricing and packaging, and increase up-sell, cross sell and renewal rates. ServiceSource will also incorporate Scout within its customer success management services for onboarding, adoption and retention. Finally, Scout Analytics customers can leverage ServiceSource’s Customer Success Management and Renewals Management software and services to increase customer retention and renewal rates.
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