SugarCRM Inc., a Salesforce.com competitor with more than 2 million users worldwide, has acquired an artificial intelligence startup called Node Inc. to build more automation features into its platform.

The deal was announced Monday. Node’s technology could help SugarCRM better match the AI automation features offered by larger rival Salesforce, whose stock jumped more than 25% today following a second-quarter revenue surge.

SugarCRM provides a so-called customer experience management platform that salespeople use to store data about current and potential customers. It also provides tools for marketing and customer service teams. Last year, the company embarked on a startup shopping spree to extend its platform’s feature set during which it has acquired four firms to date, Node being the latest.

San Francisco-based Node offers a cloud service that uses AI to help companies better understand their customers. The service flags customers who are at the risk of leaving and identifies the potential buyers with the highest chance of becoming paying clients, which helps salespeople prioritize their work. When a buyer expresses interest in a certain offering, Node can also point out if they may be open to purchasing additional products or services that would increase the total deal size.

The startup’s technology is a logical addition to SugarCRM’s platform. Chief Executive Officer Craig Charlton said that his company is helping to make sales AI technology more accessible to “drive business performance and enable predictability for companies of all sizes.”

The financial terms of the transaction weren’t disclosed. Node has raised over $40 million in funding to date from investors, including New Enterprise Associates and Mark Cuban.

Before Node, SugarCRM acquired Salesfusion Inc., another venture-backed startup that had created a platform for managing common marketing activities such as creating Google Ads campaigns. SugarCRM has also bought email productivity startup Collabspot Pte Ltd and, most recently, sales analytics provider Corvana.

Salesforce is no stranger to acquisitions, either. The company this February announced a $1.33 billion deal to buy Vlocity Inc., which offers a suite of industry-specific customer relationship management tools built atop Salesforce’s platform. 

Photo: SugarCRM