Spiceworks, an Austin-based tech company that developed a marketplace and network for IT professionals, is being acquired by New York-based Ziff Davis B2B, a global marketing company that operates brands including IGN, Mashable, Humble Bundle, Speedtest, PCMag and Offers.com.
Financial details weren't provided.
The deal, which is expected to close in coming days, will lead to layoffs at both companies, according to a blog post by founder and CEO Jay Hallberg. It wasn't initially clear how many layoffs were coming -- or how many of those will occur in Spiceworks' Austin headquarters. But a state filing shows Spiceworks is laying off 59 employees, as of Aug. 19.
The company hasn't responded to Austin Inno's questions.
In the blog, Hallberg said the two companies have a lot of talent.
"But we both recognize our businesses have some similarities and overlapping functions and skillsets that need to be addressed and integrated if we’re to build a long-term, sustainable business," he wrote. "So, we’ve made the difficult decision to combine and/or reduce some roles at both organizations. Neither organization takes these decisions lightly, and we’ve focused our efforts on being compassionate and supportive during this time."
Spiceworks was founded in 2006 by Scott Abel, Francis Sullivan, Greg Kattawar and Hallberg. The founders started by talking to a lot of IT professionals to see what tools they were lacking. It launched as a software company and pivoted to being a network for IT professionals to discuss their challenges and which software and services provided the best return on investment.
The company raised a total of $111 million from investors including Goldman Sachs, Adams Street Partners, Shasta Ventures and Austin Ventures, according to Crunchbase. It's most recent funding round was a $57 million Series E led by Goldman Sachs.
In 2016, Spiceworks laid off 12 percent of its staff -- it had employed as many as 390 people before that. It didn't share many details at the time.
One of Spiceworks' most recent moves was expanding its intent-based targeting capabilities to help IT businesses accelerate sales cycles.
Spiceworks will host its Spice World conference at the Austin Convention Center Sept. 23-25, and Hallberg said the company will share more details about its acquisition at that time.
"As a combined company, our focus is clear, and our goals are achievable: to build the preeminent marketplace that connects technology buyers and sellers," Hallberg wrote. "We’ll do so by marrying our greatest assets – the Spiceworks Community, our suite of products, Ziff Davis’ properties, and our combined expertise in helping technology brands find their next customer."
