Return Path Inc., a New York-based provider of email management and deliverability solutions for commercial customers, has acquired Mountain View, Calif.-based competitor Habeas Inc. No financial terms were disclosed.
Return Path has raised over $41 million in VC funding since 2000, from firms like Mobius Venture Capital, JPMorgan Partners, Sutter Hill Ventures, Western Technology Investment and GC&H Partners. Habeas has raised $15.6 million since 2004, from Canaan Partners, Diamondhead Ventures and Skymoon Ventures.
Two of the pioneers in email reputation management and deliverability services today joined forces to create a new company that can better address the needs of senders, receivers and consumers to ensure trusted email delivery despite growing online threats. Return Path, Inc., the largest email deliverability service provider, will acquire its closely held competitor, Habeas, Inc. The agreement creates a new, integrated email reputation management and deliverability services provider delivering a variety of comprehensive services to more than 1,500 clients globally.
Despite the hype around newer technologies, email continues to thrive as the most pervasive of all business communications tools. According to a May 2008 study by research firm Ipsos, more than 67 percent of consumers prefer email over other online vehicles and 65 percent believe this will continue to be the case in five years.
“Email is by far the most relied upon channel for business communications, and today's news will help ensure the vitality of email for many years to come,” said Matt Blumberg, Chairman & CEO of Return Path. “Return Path pioneered email deliverability five years ago, just as Habeas pioneered the third-party whitelist. Now we can combine our complementary approaches to ensure trusted email delivery regardless of fraud, spam and virus challenges. Together, this accelerates our mission to keep the email ecosystem healthy and vibrant by enabling legitimate senders to get their messages to their consumers while enabling receivers to make better, faster and more accurate spam filtering decisions.”
For Return Path customers, this acquisition solidifies Return Path's market leadership with a larger client base, more innovative tools and services, and a larger professional services team. It also increases the company's base of ISP and filtering/receiver partners and brings the industry's two leading third-party whitelists under one roof, making Return Path the undisputed leader in third-party email accreditation.
Large-volume email receivers will also benefit from this acquisition, as they will get more comprehensive data to make more accurate filtering decisions as well as a more streamlined process for managing communications with the largest pool of commercial emailers.
Habeas, founded in 2002, currently provides email reputation intelligence to a million email networks, including hundreds of ISPs, in 190 countries. This global network enables optimum delivery of Habeas-certified email to businesses, organizations, and individuals worldwide.
“We at Habeas are very proud of our track record of enabling trusted email communications and building a strong community of customers and partners committed to this same objective,” said Des Cahill, CEO, Habeas, Inc. “Return Path is a great company, and this merger will deliver more capabilities, resources and expertise to clients and partners. It's also a strong reflection of the growing need for email reputation management and deliverability services, which will help keep email strong for senders, receivers and consumers alike.”
The deal, the terms of which were not disclosed, was signed on August 6 and is expected to close on August 18. While specific integration plans are still being worked through, the company plans to maintain the Sender Score Certified whitelist and the Habeas SafeList as separate and distinct programs.
Return Path will expand its presence in Silicon Valley by keeping Habeas'
About Return Path
Founded in 1999, Return Path helps commercial email senders get more email delivered to the inbox. Our tools and services give senders the tools and insight to diagnose and prevent email deliverability and rendering failures by improving and maintaining their email sending reputations. Return Path works with both the sending and receiving communities to bring transparent standards to email delivery and filtering. Return Path's runs the internet's most widely used third-party whitelist, Sender Score Certified. For more information, please visit www.returnpath.net.