Real estate giant Compass has swooped in to acquire D.C.-based Contactually, a software startup that built one of the industry’s most popular CRM systems.
In addition to the software, the 30-employee Contactually team, which includes 20 in product and engineering, will join New York-based Compass to help build out its broker-client relationship technology. Terms of the deal were not disclosed, but a source tells the Washington Business Journal it was worth up to $50 million.
Contactually will work closely with Compass CTO Joseph Sirosh and Head of Product Eytan Seidman, along with their team of 175 technical staff. But it’s not going anywhere.
Contactually CEO Zvi Band and his team will stay put in their D.C. office, and Band said in an interview that it’s already starting hiring for more product, engineering and UX positions.
“Yes, we cared about our customer relationships and technology and investors, but really, fundamentally important was our team,” he said. “Compass is very interested in helping us invest in culture and our team and more … We’ll still very much be a part of the D.C. tech community.”
The move has caused some rumbling among Compass competitors like Sotheby’s and Berkshire Hathaway, both of which use the Contactually CRM. Existing customers of Contactually will be able to continue using the platform, Band said, and a portion of the software company’s team will maintain work for clients outside Compass.
The acquisition follows the 2018 launch of the Compass CRM, which is powered by Contactually and used by thousands of agents monthly.
Band said the firm’s main consideration was how to make sure it keeps investing in its mission and vision: “Even after 7 ½ years of product development, we’re just scratching the surface of what’s possible for technology that builds solutions helping people build relationships … Clearly Compass is on incredible growth tear, so this is a great opportunity to provide a deeper solution.”
The deal comes on the heels of Compass’ launch of its first West Coast product and engineering campus in Seattle, as well as recent acquisitions of Contactually clients Paragon and Pacific Union.
Compass, founded in 2012, is valued at $4.4 billion and has raised $1.2 billion in funding to-date. Contactually, 8 years old, had raised about $12 million in capital prior to the acquisition from investors including Grotech Ventures, Rally Ventures and Flight Ventures.
