UPDATED 22:45 EDT / JULY 08 2020

CLOUD

Slack acquires business directory startup Rimeto

Slack Technologies Inc. today said it has acquired business directory startup Rimeto Inc. for an undisclosed price.

Founded in 2016, Rimeto offers a business directory service that automatically integrates information across a company to deliver rich profiles of every employee. Pitched as “reinventing the corporate directory,” the service is said to give people the understanding they need to work together effectively, empowering people with access to information to help them feel truly connected to their colleagues.

Rimeto pulls data from various enterprise applications and home-grown data sources to deliver a unified view that the company says allows users to understand all their colleagues across business units, functions and geographies. Rimeto contends the service improves employee retention by better connecting people across a business with an experience people expect in 2020, especially millennials.

The company’s service also includes advanced search tools that are designed to allow employees to find anyone across an organization including the ability to search by name, job title, education and office.

Exactly how many customers Rimeto has coming into the acquisition was not disclosed, but one notable customer is Expedia Group Inc., which uses both Rimeto and Slack.

Slack intends to maintain Rimeto as a standalone service for non-Slack users but will integrate the company’s profile and directory features into Slack under a new name. Slack said adding Rimeto’s directory features will allow users to stay connected and maintain ties to colleagues while working remotely during the COVID-19 pandemic.

“Employees with weak social ties to their colleagues aren’t as happy or productive as employees at companies with a thriving, healthy culture,” Slack said in a blog post. “But the typical enterprise directory certainly doesn’t help; it’s about as valuable today as a phone book and usually less informative.”

Rimeto had raised $10 million in venture capital funding, according to Crunchbase. Investors include U.S. Venture Partners, Floodgate, Bow Capital and Ray Dalio.

The acquisition was well-received by Slack shareholders. Its stock rose almost 9%, to $32.24, on the New York Stock Exchange as of the close of regular trading today. The Dow Jones Industrial Average was up less than a percentage point.

 Image: Rimeto

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