Maybe it’s a good thing we didn’t learn how much the shareholders pocketed when UserEvents Inc. of Fredericton was bought this week.
It would be nice to know how much Redwood City, Calif.-based LiveOps Inc. paid in the acquisition announced Monday. But without a number, we’re forced to examine the deal’s other aspects, and realize it will help to build stronger institutions, mentors and links with global tech companies.
LiveOps, which offers cloud-based products to improve customer service and call centres, would only say it paid an undisclosed amount for UserEvents.
It’s a natural fit. UserEvents’ product CxExchange analyzes a corporation’s data to detect when a customer is having problems with a website or other communications channel. CxExchange instantly notifies the company’s call centre, which can contact the customer and sort problems out.
The goal is to retain a client and increase sales. The seven-member UserEvents office is now morphing into a LiveOps office specializing in data analytics and research and development.
“This deal signals that New Brunswick and the region continue to punch above their weight,” said Calvin Milbury, the CEO of the New Brunswick Innovation Foundation, which invested $250,000 in UserEvents 14 months ago.
“We are producing leading edge companies that are being recognized by global players as best in class. Our companies are increasingly on the radars of investors and global companies, something we are seeing first-hand at NBIF.”
The foundation, which sponsors Entrevestor.com, is one of the winners in this deal. The foundation previously made 28 times its money on its investment in Radian6, and now it has another trophy in its cabinet.
This is important because the foundation’s other portfolio companies need follow-on funding. With the Radian6 and UserEvent deals, the foundation is developing the type of track record that makes co-investors take notice of its investments.
One final note about the foundation, it’s done this great work with four employees. If this were a tweet, I’d be writing “hashtag value for money” about now.
This deal will also enrich the region’s pool of mentors, especially in Fredericton. UserEvents CEO Jeff Thompson already has the respect of a small army of entrepreneurs. He has street cred because he successfully exited his previous company Conseros.He also has innate qualities of leadership so people naturally follow him. Thompson is now 43, and his position in the community will only grow as the years pass. This deal will help to cement his reputation.
It should also raise the standing of his chief technical officer, Trevor Bernard. He built the guts of this thing that has suddenly generated wealth in New Brunswick and will serve as an example to other programmers.
He’ll join the likes of Brian Dunphy at Radian6 and Gavin Uhma at GoInstant as people who have gained prestige by leading the technology team in companies that have exited successfully.
Finally, the UserEvents sale shows another global tech company, LiveOps, that there are fantastic tech teams in the continent’s northeast corner. The policy of supporting startups is attracting some impressive companies to the region, as IBM, Salesforce and now LiveOps have all bought companies here. This is generating wealth and employment, producing returns for the government and increasing the tech community’s global network.
“We’re growing up to be a B2B (business-to-business) enterprise application ecosystem,” Thompson said Monday night. “This deal shows we can do great things in this region.”