Investment firm Scaleworks has acquired its latest software company: e-commerce search tool Nextopia. Financial terms were not disclosed.
It’s the second acquisition the so-called venture equity firm has made since raising $80 million for its second fund earlier this year. Scaleworks has said it plans to acquire five or six companies as part of its current fund.
Nextopia is the second company in a row Scaleworks has bought with a focus on making online retail items easier to find.
In May, the Houston Street-based firm announced it was bringing Denver-based SearchSpring into its portfolio. SearchSpring combines artificial intelligence and algorithms to create advanced search and navigation features for online shops. Nextopia and SearchSpring will be led by the same CEO, Peter Messana.
“Every step of the customer journey in e-commerce has a big impact on sales – from search to landing pages to merchandising,” said Lew Moorman, Scaleworks general partner and co-founder, in a blog post. “With Nextopia and SearchSpring we are assembling the best-of-breed toolset to help merchants of all size sell as effectively as the biggest players.”
Nextopia’s founder and CEO Sanjay Arora announced in a blog post Thursday that he was stepping down.
“This new chapter will see continued investment and product innovation advancing our machine learning and AI and entering new markets like B2B,” Arora said. “Today, Nextopia becomes part of the Scaleworks family, equipped with the resources for continued advancement.”
Founded in 1999, the Toronto-based Nextopia employs more than 30 people, according to LinkedIn. Scaleworks typically assembles local teams with each acquisition, and many of its companies rely on engineers and developers who telecommute from various parts of the globe.
Scaleworks spokesman Drew Olanoff said Nextopia is slated to hire locally for marketing and product design personnel.
Nextopia can integrate with e-commerce platforms such as Yahoo, Shopify, Volusion, and BigCommerce. Its features include personalized product recommendations based on browsing history and shopping behavior, autocomplete search, and visual merchandising.
Nextopia’s customer list includes Toys “R” Us, Gerber, and Sears Hometown and Outlet Stores. Among SearchSpring’s most high-profile clients are Wet Seal, Volcom, and Wine Enthusiast.
Nextopia and SearchSpring will remain separate entities, as Scaleworks does not plan to merge the two companies in the immediate future, according to the blog post.
In addition to its seven current companies, Scaleworks has sold three: source code manager Assembla, email add-on FollowUp, and email integration tool Mailgun. Scaleworks typically acquires older software companies that sell subscriptions to their services to other businesses. Their portfolio companies run the gamut from web analytics to user research.