To complement their existing software, Onyx Software Corp. has acquired RevenueLab, a sales and marketing firm that specializes in go-to-market strategy and revenue acceleration programs.
"The combination of Onyx Software and RevenueLab creates a vertically integrated offering that is truly unique," said Brent Frei, president and chief executive officer of Onyx. "Rather than extending the breadth of Onyx's technological offerings, RevenueLab builds upon it."
RevenueLabs has a customer list that includes EDS, John Hancock, Michelin, Microsoft and Wells Fargo and had developed sales and marketing strategy, process, training, skills competency and management for these and other companies. According to Frei, Onyx has found that their customers need more than just a software package and Onyx's level of process consulting, which RevenueLabs can offer.
"RevenueLabs' proprietary go-to-market strategy and revenue acceleration programs address customer needs," said Kevin Corcoran, former CEO of RevenueLabs and newly announced chief marketing officer of Onyx.
"Our software is a powerful enabling engine," Frei said. "For any enabling technology to be effective, the company must start with a clear corporate strategy. That must drive corporate initiatives."
"This merger brings these two levels of service into a single integrated offering," Corcoran said.
Onyx also plans to further its penetration into blue-chip accounts by taking advantage of RevenueLabs' existing relationship and account access. Onyx will also leverage the internal applications of RevenueLab knowledge and techniques that have previously generated high-performing sales organizations and strategic account management practices.
According to Corcoran, the average revenue increase of RevenueLabs' clients with their go-to-market offerings was anywhere from $150,000 to $250,000.
"The customer is at the core," Frei said. "One-third of our customers have requested this type of offering. ...Our guiding principal in the transaction has been that the right strategy supported by the right tools drives revenue."
Onyx's customer list includes companies such as American Express, Broadwing, CommerceOne, Credit Suisse, FirstWorld Communications, Prudential Securities and Sierra Health Services.
RevenueLabs will exist as a separate unit of Onyx. The purchase price was $7.1 million, excluding transaction-related costs. Breaking it down, $2.1 million was in common stock; $1 million was for short-term notes to shareholders, payable in cash or stock, at the discretion of Onyx. Compensation to RevenueLab founders was $3.6 million, and the remainder was in cash.
For more information, visit Onyx Software
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