Estonian TextMagic acquires a website-building platform Voog in a €1.1M deal
The Tallinn-based SMS company TextMagic has announced the acquisition of Voog, the website-building and e-commerce platform. The amount of the deal was €1.1 million. It will allow TextMagic to build, buy, and manage a diverse B2B SaaS products portfolio.
- TextMagic is an international business text messaging company that helps small businesses engage their customers. It operates mainly in the US, the UK, Canada, and Australia. It owns an A2P SMS platform that offers business text messaging services, assisting businesses with communication processes.
- Now, TextMagic develops a customer support platform, Touchpoint, scheduled to launch by the end of 2023. In 2022, TextMagic AS generated revenue of €13.83 million.
- Voog originated from the Fraktal digital design agency and was separated into Edicy OÜ in 2011. It provides a website building platform enabling businesses to design several online products. Voog has over 5,000 paying customers, and in 2022 it facilitated over 90,000 transactions through its e-shops. Voog’s sales revenue for 2022 totaled about €600,000.
“The Voog acquisition comes as our debut M&A deal, with a strategic focus on building, buying and managing a diverse SaaS products portfolio to strengthen our market position, particularly in the US. This development marks a significant step towards the company’s vision of becoming an exceptional B2B SaaS solutions group. Alongside Voog, we anticipate growth from the launch of the Touchpoint customer support software and a new version of TextMagic’s text message communication platform in the latter half of this year,”Priit Vaikmaa, TextMagic’s CEO, said.
- The acquisition includes 100% purchase of Edicy OÜ’s shares from 16 shareholders. Some of the shareholders are current employees, who had just received shares through the stock option program. TextMagic offers stock options to all employees. Henn Runnel will continue to lead Voog.