The Stitch app has been acquired by the SugarCRM company and is now being shut down, according to a report on Tech Crunch.
SugarCRM is an open source CRM which rivals Salesforce and Stitch is a mobile app made by former Salesforce executives looking to capitalize on the mobile marketplace with the first-ever app designed to help salespeople proactively follow and close deals.
The company confirmed its acquisition of the intellectual property (IP) and other assets.
Larry Augustin, CEO of SugarCRM, said in a statement issued on Monday that the company has “made Sugar an indispensable tool for customer-facing employees” and that their open source platform offers these employees “the right information, when they need it, even before they ask.”
We’ve made Sugar an indispensable tool for customer-facing employees […] Sugar gives them the right information, when they need it, even before they ask. Incorporating Stitch will make Sugar an even smarter, better-informed customer relationship management system, and put information at mobile users’ fingertips no matter where they are.
Fortune indicated in a report that Sugar has raised over $100 million and that their investment capital has been accrued from the likes of such notable companies as Goldman Sachs and Walden Venture Capital.
The company has not disclosed the price they paid to acquire the personalized digital assistant app known as Stitch.
Stitch raised $3.3 million since its founding back in 2013. Their seed capital, in large part, being attributed to a large group of investors including the likes of Google Ventures and Freestyle Capital.
Last week, prior to the announcement of the acquisition, Stitch issued a notice in which it informed customers that the current form of the service was being shut down on March 6, 2015.
According to Tech Crunch, most of the Stitch team will be joining the ranks of SugarCRM and their San Francisco office is to be transformed into SugarCRM’s city office. Sugar operates out of Cupertino, California.
Somrat Niyogi, the co-founder and CEO of Stitch, is set to join Sugar as an advisor.
What do you think of SugarCRM buying the Stitch app just to shut it down and absorb its employees?
