Hootsuite to acquire artificial intelligence chatbot company for $60M
Social media management business Hootsuite has acquired artificial intelligence chatbot company Heyday for $60 million.
Vancouver-based Hootsuite announced the deal Tuesday, saying it wanted to buy Montreal-based Heyday because the e-commerce sector is rapidly moving onto social and messaging platforms and the purchase will give it more opportunities to help brands elevate their customer experiences.
“Social is the new interface of commerce and customer care. Modern day brands have to manage a multitude of daily interactions and conversations at scale - which is impossible to do without AI automation,” said Hootsuite chief executive Tom Keiser, in a release.
“With the acquisition of Heyday, Hootsuite will now give AI capabilities to marketing, sales and support teams globally so they can deliver exceptional experiences at scale.”
Expanding its services is key for Hootsuite because the social media management space has become increasingly crowded in recent years as platforms have realized the value in social media management and began offering their own scheduling and analytics tools.
Hootsuite rivals like Buffer, Sprout Social and Later have also sprung up and tried to corner the same market.
Hootsuite's acquisition could help it stave off some of the competition and draw in clients attracted to Heyday's software.
The company said Heyday and Hootsuite will operate as separate entities, but Hootsuite plans to use Heyday's AI for its own products.
Hootsuite, which was founded in 2008, said the deal closed last week and will help it build relationships with a slew of Heyday customers, including Lacoste, Decathlon, Cirque du Soleil and Danone.
Bruce Winder believes the deal could be lucrative for Hootsuite because AI chatbots are increasing in popularity.
“It is a growing area and I do think it's going to continue to grow,” said Winder, an independent retail analyst and the author of “Retail Before, After and During COVID-19.”
He's seen chatbot technology cropping up more and more in messaging services operated by social media platforms and on e-commerce websites.
While AI chatbots used to be quite rudimentary, he said they're now growing in sophistication and people are becoming more used to interacting with them for simple queries instead of heading to a store of picking up the phone.
“It's not going to replace staff in stores, but it can help augment and complement staff in stores,” Winder said.
“I would rather chat with a bot than phone a 1-800 number, that's for sure.”
Winder believes the pandemic has already accelerated that habit for many people and helped those who were hesitant or new to certain technology get more comfortable with services like chatbots.
“Everyone went online, people are shopping more online, used to getting help online and communicating online,” he said.
“All the arrows point toward this technology becoming more important in e-commerce and this appears to give Hootsuite another option on their menu that they can offer as it becomes more topical.”
This report by The Canadian Press was first published Aug. 3, 2021.
CTVNews.ca Top Stories
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
'Summer of discontent': Federal unions vow to fight new 3-day a week office mandate
Federal unions are launching legal challenges and encouraging public sector workers to file "tens of thousands" of grievances over the new mandate requiring federal workers to return to the office at least three days a week in the fall.
Watch fighter jet pilots pummel fake enemy ship off coast of Philippines
The United States and Philippines held annual joint-training drills just off the Southeast Asian nation’s western coast on Wednesday. Military forces sunk a 'mock' enemy warship – the BRP Lake Caliraya, which was a decommissioned tanker made in China.
'Ozempic babies': Reports of surprise pregnancies raise new questions about weight loss drugs
Numerous women have shared stories of 'Ozempic babies' on social media. But the joy some experience in discovering pregnancies may come with anxiety about the unknowns.
OPINION What King Charles' schedule being too 'full' to accommodate son suggests
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
'I killed four people': Trial hears video evidence of Jeremy Skibicki at Winnipeg trial
“I killed four people,” alleged serial killer Jeremy Skibicki told two homicide detectives during a recorded interview played as evidence in his trial Wednesday.
AstraZeneca says it will withdraw COVID-19 vaccine globally as demand dips
AstraZeneca said on Tuesday it had initiated the worldwide withdrawal of its COVID-19 vaccine due to a 'surplus of available updated vaccines' since the pandemic.
Seafood, eat food: Calgary Stampede releases Midway menu
The Calgary Stampede has released its menu of sweet, salty and spicy treats available on the Midway for the Greatest Outdoor Show on Earth.