Xactly Corp., a San Jose, Calif.-based provider of sales compensation and performance management software, has acquired Lowell, Mass.-based rival Centive Inc.. No pricing terms of the all-stock transaction were disclosed. Xactly has raised nearly $60 million in total VC funding since 2005, from firms like Alloy Ventures, Bay Partners, Cheyenne Ventures, Glynn Capital Management, Rembrandt Ventures, Outlook Ventures and Spinner Asset Management. Centive had raised over $96 million since 1998, from firms like Key Venture Partners, Growth Alley, Polaris Venture Partners, Tailwind Capital Partners and VSP Capital.
Xactly Corporation today announced it has acquired the Lowell, MA-based company Centive to become the software industry’s largest provider of 100-percent on-demand sales performance management (SPM) solutions. In a stock-based transaction, Xactly has acquired all of Centive’s assets and its employee base. The combined companies will operate under the name Xactly.
“Like Xactly, Centive is a 100-percent on-demand sales compensation and sales performance management company with a strong customer base and solid product platform,” said Christopher Cabrera, president and CEO, Xactly Corporation. “The synergies of combining our companies will offer significant value to our customers, including a broad portfolio of purely on-demand SPM solutions, decades of domain expertise, an experienced partner ecosystem, and the long-term viability of a well-capitalized company.”
SPM solutions automate all aspects of administering, tracking, reporting and analyzing sales performance. Especially in challenging economic times, companies rely on Software-as-a-Service (SaaS) solutions for SPM to maximize the effectiveness of sales and drive profits. Market analysts predict the SPM market will reach $8.2 billion by 2010.
“By acquiring Centive, Xactly has dramatically strengthened its position in the market as a leading provider of pure SaaS SPM solutions,” said Jeffrey M. Kaplan, managing director of THINKstrategies and founder of the SaaS Showplace. “Combining the on-demand SPM capabilities of Centive and Xactly can help companies of any size, in any industry to boost sales and business performance, and generate increased revenues while reducing costs, which is especially important in today’s tough economic environment.”
Xactly will fully support both companies’ product platforms for a minimum of 18 months to ensure the seamless transition of customers to a unified product roadmap. The company will continue to be led by Xactly’s management team, and will maintain its headquarters in San Jose, California.
About Xactly Corporation
Xactly Corporation is the market leader in on-demand sales performance management. The company’s flagship product, Xactly Incent, enables sales and finance executives to design, implement, manage, audit and optimize sales compensation management programs easily and affordably. Xactly solutions automate the process of aggregating data from disparate systems into a secure, hosted repository, and enable companies to leverage this business data, which is the lifeblood of sales performance management. Xactly helps companies improve operational performance, optimize sales effectiveness, proactively manage risk and compliance, and maximize profits. The Xactly family of products is used by sales and finance executives, compensation analysts, sales operations and sales professionals across a variety of industries, ranging from SMBs to large enterprises. For more information, visit www.xactlycorp.com or call 1-866-GO-XACTLY.
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