Estonia’s prominent business SMS provider TextMagic has recently made its first acquisition by purchasing a website building platform. This strategic move aims to enhance the company’s market position by expanding its portfolio of Software-as-a-Service (SaaS) products.
TextMagic AS has recently made a significant move in its business strategy by acquiring Voog, a website building platform. The acquisition is valued at €1.1 million and it was completed entirely with cash.
This deal not only signifies TextMagic’s entry into the SaaS market but also highlights their ambition to become a prominent player in the industry. It is an important milestone for TextMagic as they start building a portfolio of SaaS products.
Henn Runnel, the CEO of Voog, will remain at the company along with the current team. They have exciting plans to expand the team by hiring more marketers, product specialists, developers, and marketers in order to support the company’s growth.
According to Runnel, their aim is to enter the US market by leveraging the collective expertise in software and marketing. At present, the majority of their revenue, approximately 90%, comes from Estonia, while TextMagic has achieved an impressive 70% of its revenue from the US market.
Voog is a digital design agency, which gave rise to Edicy OÜ in 2011. Recently, an agreement was reached between Textmagic and Edicy OÜ. In this agreement, Textmagic acquired all the shares of Edicy OÜ from its 16 shareholders. Notably, some of these shareholders were employees who had received shares through the stock option program. It is worth mentioning that TextMagic also provides stocks to its own employees.