With 2019 nearly in the rearview mirror, it's time to look back on the year that was. As part of our year-end coverage, Chicago Inno is recapping some of the most notable Chicago startups and tech companies that were acquired in 2019.
Arguably the biggest startup acquisition this year was Reverb's sale to Etsy. The publicly-traded online marketplace for independent sellers scooped up Reverb for $275 million in cash.
Other notable companies that came shopping for Chicago startups include Amazon, S.C. Johnson, NBC Sports, Equifax and VC-backed Boston startup Toast. Check out the full list below.
Chicago Startup Reverb Acquired By Etsy for $275M
Reverb, the Chicago-based online music gear marketplace, was acquired by Etsy this year for $275 million. Etsy, the online marketplace for creative goods, paid for Reverb in cash. Reverb continues to operate as a standalone business.
Launched in 2013, Reverb has built an online marketplace where shoppers can buy and sell new, used and vintage music gear. The company raised $47 million in venture capital from investors such as serial entrepreneur Eric Lefkofsky, PayPal Founder Max Levchin and GE32 Capital. In 2018, the company reported revenue of $36 million.
Amazon Buys Health Navigator
Amazon scooped up a Chicago digital health startup as the e-commerce giant dives further into the healthcare industry. In October, Amazon acquired Health Navigator, a Chicago startup led by David Thompson, a physician at Northwestern Memorial Hospital. Health Navigator provides tools to digital health companies, such as online symptom checkers, health bots and telehealth applications.
Amazon will offer Health Navigator to employees as part of its Amazon Care clinics. Amazon Care operates as a virtual medical clinic for Amazon employees, and the company is piloting the service to its Seattle employees. Terms of the deal were not disclosed.
Ann Arbor Logistics Company Acquired Chicago’s Opex Analytics
Opex Analytics, a Chicago-based artificial intelligence and consulting startup, was scooped up by Llamasoft, an Ann Arbor, Mich., logistics tech company. Opex was co-founded by Northwestern University adjunct professor Michael Watson in 2013. Terms of the deal were not disclosed.
Men’s Skincare Startup Oars + Alps Acquired by S.C. Johnson
Oars + Alps, a Chicago startup that makes skincare products for men, was acquired by S.C. Johnson. The startup was pruchased for around $20 million, multiple sources told Chicago Inno in September. Launched in 2016 by Mia Saini Duchnowski and Laura Lisowski Cox, who were both frustrated by the lack of healthy products available for their husbands, Oars + Alps produces men’s skincare products made with natural and toxin-free ingredients. It sells deodorant, moisturizer, body wash and other products.
Boston Startup Toast Acquires Chicago Software Firm StratEx
Toast, a Boston-based tech unicorn that makes a management platform for restaurants, acquired StratEx, a Chicago-based HR and payroll software company focused on the restaurant industry. StratEx’s software was used by restaurants to automate scheduling, applicant tracking, payroll, benefits and labor law compliance. It counts clients such as Dunkin’ Donuts, Jimmy John’s, Giordano’s, and Girl & the Goat. Terms of the deal were not disclosed.
Sam Yagan’s ShopRunner Acquires a Chicago AI Startup
ShopRunner, an e-commerce shipping and checkout startup led by Sam Yagan, acquired Precognitive, a Chicago startup that helps businesses fight online fraud. With the acquisition, ShopRunner now provides Precognitive’s product to its network of retailers. Founded in 2016, Precognitive uses artificial intelligence and machine learning to identify potential online fraud before it happens. Its technology analyzes multiple parts of a user’s interaction with an online service to identify suspicious behavior. Terms of the deal were not disclosed.
Chicago Startup ItemMaster Gets Acquired
ItemMaster, a Chicago startup that helps companies produce product photos and information for better packaging, was acquired by Gladson, an e-commerce product management company. ItemMaster helps brands make better product labels, ensuring that the information is accurate and engaging to customers. The startup gives companies a platform to update their information online, allowing brands to better categorize their inventory. The startup has raised $7.5 million in funding to date
Digital Agency Rightpoint Acquired by Genpact
Chicago-based digital consultancy Rightpoint was acquired by Genpact, a publicly-traded professional services firm. Rightpoint raised $55 million in outside funding since it launched in 2007. Co-founder Ross Freedman will continue as CEO of the business. Terms of the deal were not disclosed.
NBC Sports Buys Chicago Tee-Time Booking Company
NBC Sports Group acquired EZLinks, a Chicago-based online golf tee-time booking company. EZLinks operates TeeOff.com, which is like the OpenTable for tee-times. Terms of the deal were not disclosed.
InRule Scooped up By OpenGate
Chicago tech firm InRule Technology was acquired by private equity firm OpenGate Capital. InRule, founded in 2002, has developed software that offers a decision management platform and business rules management system to enterprises and government customers. Terms of the deal were not disclosed.
UChicago Spinout Acquired by GraphPad
University of Chicago spinout SnapGene was acquired by San Diego-based biotech company GraphPad. SnapGene's software helps scientists plan, visualize and document molecular biology procedures. Terms of the deal weren't disclosed.
Champion Healthcare Bought By PE Firm
Chicago-based Champion Healthcare Technologies, a portfolio startup of Jump Capital, was acquired by private equity company Riverside. Champion is a SaaS provider for hospitals that tracks and manages tissue and implantable devices throughout the chain of custody. Terms weren't disclosed.
Equifax Buys Skokie Credit Rating Biz
Equifax acquired PayNet, a Skokie-based small business-credit rating company. Founded in 1999, PayNet says it has the largest proprietary database of small business loans, leases and lines of credit. Terms of the deal were not disclosed.
Bump Club and Beyond Acquired By California e-Commerce Company
Bump Club and Beyond, a Chicago-based online resource for parents and expecting parents, was acquired by Brand Connections, an e-commerce company based in California. Bump Club and Beyond launched in 2010 and hosted events in over 25 cities across the country. Terms of the deal weren't disclosed.
