eCircle acquired by Teradata, details about the deal

This Wednesday the European email service provider eCircle was acquired by Teradata.

E-circle, which was founded in 1999, is a privately held company with about and 400 employees and 1,000 customers. eCircle is set to merge with Teradata’s Aprimo unit.

The portfolio now combines eCircle’s messaging platform, the marketing management software of Aprimo and the data analysis vendor Teradata itself. The joining together of all three companies will result in the creation of one of the largest marketing applications providers in Europe, according to the announcement by of eCircle even the biggest.

eCircle delivers digital messages–ads and marketing messages–via email, social channels, and websites. In this it knows competitors like Exact Target, Responsys, and Silverpop and Emailvision in Europe. Aprimo already had some of eCircle’s messaging capabilities. Stephanie Miller, VP of digital messaging at Aprimo said eCircle’s technology is both more mature and more capable.

Stephanie Miller of Aprimo:
“eCircle will take us deeper into mobile and social, and it also brings us content-creation and content-management capabilities.”

Rolf Anweiler of eCircle added in an announcement on the eCircle blog:
“We’re delighted to be forming a new generation of digital marketing applications and are really looking forward to joining the Teradata and Aprimo teams whose combined skills, expertise and experience will help all our global customers stay ahead of the competition, taking Digital Marketing to the next level.”

The eCircle software will be integrated into Aprimo, but maintaining its current business operations and support for current customers once the acquisition is complete. In December 2010 Teradata acquired Aprimo, with which they gained access to deeper digital marketing capabilities, but Teradata and Aprimo still operate as standalone businesses.

Did Teradata make a wise Acquisition by bringing eCirlce in?

Forrester did an interesting analysis of the acquisition, by looking at the future of the deal. Will Teradata treat eCircle as a defensive portfolio play or as a bold platform play? Accoring to Forrester, both companies gain from the deal. Teradata is the bigger winner, since eCircle fills gaps in the AMS and ARM products: proven email service, integrated digital and social messaging, native software-as-a-service (SaaS) delivery, and a strong presence in Europe. eCircle gains wider access to North America, marketing resource management (MRM) capabilities, and direct access to Teradata and Aster Data’s engineering talent. Forrester ends with stating the Portfolio play is safer, but not enough.

Steps by eCircle Aprimo and Teradata

The financial details fo the acquisition by Teradata of eCircle acquisition were not disclosed. The acquisition is expected to be finalized in the second quarter of 2012. The deal is  subject to regulatory European Union regulatory approval.

Once the Teradata eCircle acquisition is final, eCircle’s current senior leadership team will join Aprimo and continue to work for the company in similar leadership roles. eCircle’s Chief Executive Officer, Volker Wiewer, will be joining both the Teradata EMEA Leadership team and the Aprimo Leadership Team as vice president of Aprimo EMEA.

The press release by Teradata can be found here.

Jordie van Rijn

About Jordie van Rijn

Jordie van Rijn is an independent email marketing consultant and Analyst. He is the Founder of Email Vendor Selection and specializes in smart email marketing, optimisation and RFP / vendor selection. Named one of "50 Online Marketing Influencers to Watch " by Entrepreneur magazine.

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