Social media giant Facebook have acquired Redkix, an email and messaging software that will now form part of Workplace, Facebook’s subscription-based social network for businesses.
The Workplace software, which is a lot like the more consumer-focused version of Facebook, combines social features like messaging and groups with traditional office features like calendars and email.
Redkix on other hand, combines the collaborative tools provided by platforms like Slack with email. This app will dissolve on acquisition and the founders Oudi and Roy Antebi will bring their expertise in enterprise collaboration tools to Facebook’s Workplace team. The shared vision of the two companies was laid out in a statement:
“Bringing people closer together is at the core of Facebook. Workplace brings this mission to enterprises to make them more connected and productive. We’re aligned with their vision and excited to work with them to help companies collaborate and get work done.”
Although reports suggest the deal was valued at $100 million, no specific financial details have been released, and there has been no elaboration on how Workplace plans to integrate Redkix’s technology. Commentators, however, have suggested the acquisition could be an effort to broaden the Workplace offering to help it contend with the likes of Slack – the popular messaging platform used by more than twice the number of companies. Although it is likely that the deal has been under consideration for some time, its completion has come at an opportune time for Facebook. News of slowed growth and rising costs saw the company lose $118bn in market value last week.
Workplace, which launched in 2015, was designed to provide Facebook with an additional stream of revenue to the consumer-focused business, which relies primarily on advertising. Instead, Workplace is sold on a subscription model.
“We are thrilled to welcome Redkix to the Workplace team as we continue to connect people and give the world a place to work together. Across the world, more than 30,000 companies use Workplace by Facebook to collaborate with their colleagues and get more work done.”
This acquisition shows Facebook’s continued effort to remain relevant in the ever changing landscape of enterprise software – one of today’s fastest growing and most fiercely competitive markets.
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