Sydney-based startup Search.io has just been snapped up by a French company.
👉Background: Search.io is a Sydney startup developing advanced search technology called 'vector search'. Think smarter search powered by artificial intelligence. It's used by big name businesses like Catch, Sennheiser and Lockheed Martin.
👉 What happened: Search.io's tech is looking pretty valuable, because a French unicorn company called Algolia has forked out a healthy stack of cash and shares to snap up the company.
👉 What else: We don’t know the exact deal amount, but we do know it’s a hefty sum. But what’s interesting here is that Algolia and Search.io are similar enough to be brothers, if not twins…
💡Exploring an acquisition opportunity with a rival can be more awkward than being the first one to rock up to a house party.
💡Acquisitions require due diligence… and when you’re in talks with a competitor, that means spilling all your company secrets to an arch-rival. And given that an estimated 70% of all M&A deals fall through you could potentially be gifting your rival a competitive advantage.
💡This is why Algolia ‘stalked’ Search.io for a solid 18 months before daring to make a move. These deals can certainly be precarious, but it’s certainly worth the effort for Search.io’s investors and co-founders right now.
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