Report: Answers.com raises $300 million, buys ForeSee results for $200 million
Answers.com is a popular Q&A website that been expanding into other services. Answers.com runs a cloud-based platform that sells Q&A services to other websites and has acquired ForeSee to integrate those services. The acquisition of ForeSee was made through debt and equity funding rounds in Answers Corp. and AFCV Holdings. Answers.com raised around $300 million in funding and bought ForeSee for $200 million, according to a report from TechCrunch.
ForeSee measures satisfaction and customer experience to determine how to prioritize improvements. Based in Ann Arbor, Michigan, ForeSee is Answer.com’s third acquisition for the year.
“Our recent acquisitions of Webcollage and Easy2 have strengthened our industry leadership, and ForeSee further augments the value we can deliver to our clients,” stated David Karandish, CEO of Answers.
ForeSee customers include around half of the Fortune 100. The company raised around $20 million in funding prior to the acquisition.
Answers.com generates around half of their revenue from subscriptions. Answers.com used to be a public company, but AFCV Holdings acquired them for around $127 million in February 2011. After the acquisition, Answers.com was turned into a software-as-a-service model. Answers.com generated around $160 million in 2013 sales.
SunTrust Robinson Humphrey and Silicon Valley Bank led the debt financing in Answers Corp. Summit Partners, TA Associates, and AFCV’s executives oversaw the equity round.