Behind the scenes of modern retail, there is a growing business to take advantage of your competitors’ prices, plug that data into a system and then figure out which price would be best to beat your foes while still getting the highest sale possible from your customers. Two recent collaborators in the market have decided to make their relationship official.
Austin, Texas-based Revionics, a player in the pricing solutions market, has acquired Israeli Marketyze in a deal reportedly with tens of millions of dollars. Marketyze has developed a platform to collect and compare data on competitors for retailers.
Marketyze is a graduate of Peregrine Ventures’ Incentive incubator. Other investors include the Trump Group (no, not that one) via its PEVC arm TG Ventures, and a number of other funders from Canada, who contributed to $1.6 million in seed funding back in 2012. While not officially disclosed, the final acquisition price is thought to be in the tens of millions of dollars.
Revionics counts major retailers like Dick’s Sporting Goods, FamilyDollar and eBags among its clientele. The company has 180 employees in centers scattered across the U.S., U.K., Germany and Australia. Past acquisitions by the Austin company include Retail Optimization and SkuLoop, both in 2012.
The two companies plan to collaborate on a competitive pricing business strategy, according to a joint press release. Their target will remain retailers looking to optimize their sales prices to compete on online, competitive pricing platforms. It is actually the culmination of a long business partnership between the two companies, which Marketyze Co-Founder and CEO Onn Manelson described recently to Retail Touchpoints.
“A lot of their [Revionics] solutions are focused internally, so they look a lot at what’s happening on the retailer’s side,” Manelson said. “What we bring in is the approach of what’s happening outside, gaining that additional visibility, and combining the two. So we take the market information, market data . . . and combine it with what’s happening with the retailer. You get a much fuller picture that you can react to in a much better way.”
“The merger with Revionics enhances the ability of retailers to implement a holistic strategy in all their sales funnels and to implement more consistent pricing schemes and promotions,” Manelson added in a joint press release. “Retailers will benefit from the speed, scalability, and savings that this merger of our two solutions will enable.”
TG Ventures presents itself as a VC interested in helping early-stage Israeli tech companies enter the Chinese market. TG consequently maintains offices in Beijing, Shanghai, Hong Kong, and Zikhron Ya’akov, Israel.
Marketyze was co-founded by CEO Onn Manelson and CTO Nave Ronen in 2011 and today counts six employees, but will be converted into an Israeli R&D headquarters in Ra’anana for Revionics. Their new parent company promises to hire dozens of new workers in 2016. They name Reuben Halevi and Eyal Keren as senior advisors.