Two giants of the experience management software world are joining forces, with Qualtrics International Inc. announcing its intent to acquire rival firm Clarabridge Inc. today in a deal valued at $1.125 billion.

Qualtrics, which was recently spun out of SAP SE before going public earlier this year, provides cloud-based software that companies can use to collect feedback from different stakeholders. It relies mostly on surveys to generate that feedback. For instance, human resources departments can use Qualtrics to ask employees their opinions on topics such as the effectiveness of the new-hire onboarding process. Product teams can use Qualtrics to measure customer satisfaction and find new market opportunities.

The company’s survey-based approach to collecting insights should pair nicely with Clarabridge’s artificial intelligence software, which works by analyzing social media posts and customer support calls to understand how consumers feel about their experience with a particular brand, product or service.

Qualtrics Chief Executive Zig Serafin told Reuters Thursday that customers and employees share feedback constantly. “They’re doing it on social media, support calls, chats, they’re doing it in product reviews. Everywhere,” he said.

What really sold Serafin on Clarabridge is that company’s AI software, which has a deep understanding of human language and people’s intent, he said. The software is able to detect not only if a customer on a support chat is upset, for example, but just how intensely upset that customer is. That is a key insight which can help companies to decide how to respond more appropriately, he said.

“Combining our strengths will create the best of both worlds for our customers,” Serafin wrote in a blog post. “Clarabridge’s sophisticated omnichannel conversational analytics will extend our platform’s ability to turn any type of experience data into actionable insights. Our customers will be able to tune into, analyze, and act on everything customers and employees are saying about their organization, wherever they’re saying it.”

Clarabridge CEO Mark Bishof concurred, saying: “What we deliver is far more powerful as part of Qualtrics, and we have an incredible opportunity to accelerate our growth and innovation.”

The potential opportunity for the newly combined company could be massive, as the ability to listen to what customers are saying across multiple channels is likely going to be a critical capability for many organizations in the future, said International Data Corp. analyst Alan Webber.

“Increasingly, customers and employes provide feedback in many different places and organizations will benefit from having a single platform to capture it, uncover insights and use them to drive action across their business,” Webber said.

Qualtrics said the acquisition will be paid for through a fixed number of its class A shares at $37.33 per share. The deal, which is still subject to regulatory approval, is scheduled to close during the fourth quarter of the year.

Images: Qualtrics