SocialChorus and Dynamic Signal, two high-growth SaaS leaders in the digital employee experience (DEX) space, have entered into a definitive merger agreement. Sumeru Equity Partners (SEP) will make a significant new growth investment in SocialChorus and subsequently fund the combination with Dynamic Signal. In addition, senior management and existing investors of both companies will invest a meaningful stake into the transaction. Additional terms of the transaction were not disclosed.
SocialChorus and Dynamic Signal joining forces is a leap forward in the mission to transform how companies connect every worker with the right information at the right time. This combination will accelerate the move away from destination site delivery models to an orchestrated digital employee experience that fosters employee productivity and well-being.
“The digital employee experience of an organization is not a destination, it’s an expectation and experience that meets the needs of a distributed and diverse workforce,” said Gary Nakamura, CEO of SocialChorus. “To truly solve the problem, meeting workers where they are with personalized information and resources is critical. The combination of SocialChorus and Dynamic Signal presents a huge opportunity for growth and innovation on the journey to give customers what they need to create an unparalleled digital employee experience."
SocialChorus and Dynamic Signal will unite under the leadership of Gary Nakamura, CEO of SocialChorus, and an executive team comprised of Dynamic Signal and SocialChorus team members. Three representatives from the Dynamic Signal board of directors, including Eric Brown, CEO of Dynamic Signal, will join the current SocialChorus board of directors to form the board of the combined company.
SEP, majority investor in SocialChorus, has experienced strong success in driving growth and scaling operations. Mark Haller, Principal of SEP stated, “The digital employee experience space is fast-growing and dynamic, and we believe the combination of talent and product innovation will significantly enhance our offerings for customers. We are excited to bring SEP’s operational expertise to create a world-class organization to lead a new chapter of continued growth.”
After closing, the combined organization is expected to scale rapidly with additional resources to accelerate investments in product development and customer service innovation. The combined organization will continue to support solutions across their respective platforms and will serve more than 500 customers and reach over 15 million employees globally.
“I am incredibly excited that Dynamic Signal and SocialChorus are combining to create the best platform in the industry,” added Brown. “Together, we will build on the shared belief that organizations must create a digital employee experience that lifts all workers, giving them equitable access to information and a voice in the conversations that move their company and cultures.”