Augeo, a loyalty marketing and engagement firm, announced Tuesday that it has acquired Structural, a human resources software platform co-founded and led by Scott Burns.
The St. Paul-based companies say the deal, which became effective Oct. 1, represents the culmination of a multi-year partnership between the two, which has included previous investments and platform integration. The companies did not disclose the acquisition price but said Structural is now a wholly owned subsidiary of Augeo.
"We've built a certain confidence and speed together that really is second to none," David Kristal, Augeo founder and CEO, said in an interview. "There's a really shared thirst for growth."
Structural was co-founded in 2017 by CEO Burns – a 2020 Business Journal Most Admired CEOs honoree – alongside Indianapolis-based venture firm High Alpha. Structural’s platform provides large companies with an internal directory similar to LinkedIn.
Structural has a team of just over 20 employees and has raised over $10 million in venture capital to date, Burns, who will now serve as president overseeing the Structural division of Augeo, said. Last year, the company raised over $2 million in equity in a fundraising round led by Augeo, according to the Minne Inno report at the time.
And Structural’s workplace-focused platform is already integrated into Augeo’s suite of engagement services for businesses and employees, according to the announcement.
"Joining forces with Augeo will enable us to quickly elevate our growth," Burns said in the announcement. "Our commonalities form a holistic approach to workplace engagement, creating new opportunities for organizations to build connected, stronger and more productive organizational cultures. Our shared values provide an exciting framework for success rooted in the same care and passion we have for our clients and customers."
Structural’s investors included well-known tech leaders like AOL Co-Founder Steve Case as well as Scott Dorsey, the co-founder of ExactTarget, which became the Salesforce Marketing Cloud, according to the announcement. Twin Cities investors have also provided funding to the company, including Matchstick Ventures, Great North Labs, and Bread and Butter Ventures (then investing as The Syndicate Fund.)
No layoffs occurred with the acquisition, Kristal said.
Augeo currently serves hundreds of clients, including dozens of Fortune 500 companies, according to the announcement. Structural's platform has 50 clients representing over a million employees, Burns added.
Earlier this year, Augeo announced it was launching a crypto-focused loyalty platform, allowing users to exchange loyalty points for cryptocurrencies, the Business Journal reported. That platform, called Heaps, launched in August, the company said.
Augeo has seen over 4,000% revenue growth in the last 15 years, which is due, in part, to the company's mergers and acquisitions work, Kristal said. The company recently sold its fintech business Figg to JPMorgan Chase this summer, and acquired entities like Wellington and Deluxe Rewardslast year.
"We are entirely about growth," Kristal said. "Among ... the business reasons we came together was because both Scott and I concluded with our team that we can accelerate and grow faster together."
