German based software giant SAP announced on Sunday it would acquire Gigya, to give more strength to its hybris e-commerce sector. The deal’s terms were not officially disclosed, but sources said it was close to $350 million.
That figure was the same that had previously been reported when news was leaked about the sale by Israeli media. Gigya is Mountain View. California based but has a research & development arm in Israel, and it founders are from Israel.
Today Gigya manages more than 1.3 billion customer identities on hundreds of different sites, and will bring that all under the umbrella of SAP.
The thought of SAP is to integrate the features into the wider e-commerce operation of SAP to expand its types of services to offer its existing customers, and help sell more services of e-commerce to the existing clients of Gigya.
SAP Hybris co-founder and President Carsten Thoma said that Gigya will bring a wealth of expertise and skills that will enhance in a significant way our Hybris Profile solution as well as allow SAP to take the leadership role of the emerging access management and customer identity market.
Gigya started originally as a social log-in platform that helped properties online to manage client profiles.
However, a couple of years ago, it began to broaden out in identity management and its different uses for customer management for e-commerce as well as other sites.
Gigya has not been immune to issues. The platform of the company was used in 2014 by the Syrian Electronic Army as a backdoor to hack different websites, but that vulnerability subsequently was repaired by the company.
With an increase in breaches, a focus has been seen on better as well as strengthened identity management. Companies focused on e-commerce, working the way they do in consumer trust and large numbers of transactions, are in a position to lose the most of all the verticals online.
They are only trying to create more intelligent and better identity management systems that will make the experience of their user more user friendly.
In addition, one big detail in the current offering by Gigya is its product, which is sold as a “registration as a service,” is important in the world of e-commerce since different regions have compliance requirements as well as regulations that are specific to that particular region, both in where data gets housed and the protections of the data.