Open source CRM provider SugarCRM has acquired the San Francisco-based mobile startup Stitch.
Rumors of the deal began to swirl late last week, after Stitch sent word to its users that the service was shutting down. SugarCRM finally confirmed the acquisition Monday, however no financial terms of the deal were immediately disclosed.
A group of ex-executives from SugarCRM competitor Salesforce founded Stitch in 2013. The Stitch application is essentially a mobile assistant for salespeople, grouping and sifting through cloud-based documents to provide personalized sales recommendations via analytic insights. But it takes the data intelligence a step further by also using algorithms to drive increased efficiency.
SugarCRM will use Stitch to bolster the services of its own mobile app, as the company said future releases of its platform will include Stitch capabilities. Although SugarCRM has offered its own mobile app since 2013, its purpose was mainly to connect users to their database, with little muscle in the intelligent data department.
In addition to the mobile boost, SugarCRM is also turning the deal into an acqui-hire scenario, with Stitch executive and co-founder Somrat Niyogi joining the company along with Stitch's mobile engineering talent.
"We've made Sugar an indispensable tool for customer-facing employees," said Larry Augustin, SugarCRM CEO, in a statement. "Incorporating Stitch will make Sugar an even smarter, better-informed customer relationship management system, and put information at mobile users' fingertips no matter where they are."