Dropbox Inc. (NASDAQ:DBX) has announced that they have committed $230 million to purchase document workflow and e-0signatiure start-up HelloSign. The acquisition is a way to entice their free users to move into paid subscription as well as expand their reach beyond consumers to enterprise customers.
Expanding their products
The acquisition of HelloSign is a move geared towards the expansion of Dropbox’s workflow products. HelloSign started the development of the first-ever user-friendly mobile portal over two years ago. The HellWorks portal; has capabilities such as online faxing, electronic signature and other personalized options.
In addition to HelloSign, the company currently partners with Adobe sign, DocuSign to provide their customers with e-signature capabilities for the free and paid options. The acquisition of HelloSign means that customers will get the HelloWorks as a paid or free service. However, the HelloSoign API will be used for the development of Dropbox’s services offered as a paid subscription.
The company currently has over 80,000 customers, and they are looking to add big names to the growing list including Twitter, Samsung as well as Lyft. It is however not clear on the exact percentage of the number of paid subscribers.
Drew Houston, the Dropbox CEO indicated that HelloSign had developed a thriving business that focuses on document workflow and e-signature products. Therefore, its acquisition is something Dropbox users will love. He added that the two companies could deliver better user experiences that expand their market as well as simplify workflow.
The deal is the biggest deal that Dropbox has procured since its formation in 2007, and it sets up the company as a significant player among competitors such as Adobe and DocuSign. According to Cheryl McKinnon, Forrester Research Analyst, the acquisition is a smart move since the content is sticky and once integrated into technology in the internal processes of customers it is difficult to dislodge. Cheryl stated that the HelloSign team has a robust background in software development which will capture the attention of corporate customers.