Why Slack Technologies Inc (WORK) Is Buying Rimeto

By Amit Chowdhry ● July 10, 2020
  • Slack Technologies Inc (NYSE: WORK) recently announced that it is buying a business directory software company called Rimeto. These are the terms of the deal.

Slack Technologies Inc (NYSE: WORK) recently announced that it is buying a business directory software company called Rimeto. The terms of the deal were undisclosed.

How does Rimeto work? Rimeto essentially runs an enterprise directory that showcases detailed information about company employees and their projects. Slack is planning to integrate Rimeto’s profile and directory into its own platform. However, Rimeto’s software will continue to be sold as a standalone product.

Rimeto lets you search across every attribute whether you are looking for a project leader or everyone who worked with a specific customer, an expert on sales cycles in a region, or want to understand the new member of your team a little better.

Slack pointed out that employees with weak social ties to their colleagues are not as happy or productive as employees at companies with a thriving and healthy culture. However, the typical enterprise directory certainly does not help and it is about as valuable today as a phone book and usually less informative.

Plus Slack noted that it is a natural fit for Rimeto. The channels make it easy to find the information you need and understand what your team is working on.

In an interview with CNBC, Slack CEO Stewart Butterfield said that the two companies started their talks shortly before the pandemic. And Butterfield also told investors that there are plenty more deals where this came from.

Key Quotes:

“We’ve been on a mission to help everyone easily find and understand their colleagues – and all of the groups, teams, and projects within their organization. Joining Slack is a special opportunity to accelerate the impact and reach of the product we’ve spent years building. We couldn’t be more excited to help make Slack an even better platform for bringing human connection and collaboration to life.”

— Rimeto founder Ted Zagat

“At Expedia Group, we use both Slack and Rimeto to give our employees a better way to work together by making it easier to collaborate, access and share information. I’m excited to see these two companies come together given how we’ve seen both platforms deliver significant value across our organization.”

— Chris Burgess , Vice President of Global IT at Expedia Group

“A challenge with remote working is how to feel more connected to your colleagues. The Rimeto acquisition can result in enhanced creativity, problem-solving and collaboration in Slack by enabling a more effective connection between people.”

— Wayne Kurtzman , Research Director, Social and Collaboration at IDC