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Optimizely

Following acquisition, Episerver rebrands as Optimizely

After acquiring Optimizely last fall, content management company Episerver is adopting the Optimizely name for the entire organization.

CEO Alex Atzberger told me that the company will be rolling out new branding in the next coming months, as well as renaming its entire product suite to reflect the Optimizely brand.

“We believe it’s no longer just about personalizing the experience or driving recommendations,” Atzberger said. “The brand and word Optimizely really signifies optimal performance. Companies today of any size, any scale [need to be] much more sophisticated in terms of how they digitally connect with their customers. It’s a never-ending story.”

At the same time, he emphasized that Episerver is making the change from “a position of strength,” with the combined company seeing double-digit revenue growth last year and going live with more than 250 new customers.

Asked whether adopting the Optimizely name was always part of the post-acquisition plan, Atzberger replied, “When we acquired Optimizely, we knew that we would be acquiring not just a great product, not just a great customer base, but also acquiring a very well-known brand. We had not yet decided on [rebranding], but it was certainly something that, for me, was part of the consideration.”

In addition to announcing the new company name, Episerver/Optimizely is also announcing a new platform that it’s calling Optimization-as-a-Service, which integrates aspects of Optimizely and Episerver products to offer web targeting, testing and recommendations. As Atzberger put it, this new platform allows customers to determine “who to show something to, what content to show and how to actually show this content.”

Color raises $167 million funding at $1.5 billion valuation to expand ‘last mile’ of U.S. health infrastructure

Healthcare startup Color has raised a sizeable $167 million in Series D funding round, at a valuation of $1.5 billion post-money, the company announced today. This brings the total raised by Color to $278 million, with its latest large round intended to help it build on a record year of growth in 2020 with even more expansion to help put in place key health infrastructure systems across the U.S. – including those related to the “last mile” delivery of COVID-19 vaccines.

This latest investment into Color was led by General Catalyst, and by funds invested by T. Rowe Price, along with participation from Viking Global investors as well as others. Alongside the funding, the company is also bringing on a number of key senior executives, including Claire Vo (formerly of Optimizely) as Chief Product Officer, Emily Reuter (formerly of Uber, where she played a key role in its IPO process) as VP of Strategy and Operations, and Ashley Chandler (formerly of Stripe) as VP of Marketing.

“I think with the [COVID-19] crisis, it’s really shone the light on that lack of infrastructure. We saw it multiple times, with lab testing, with antigen testing, and now with vaccines,” Color CEO and co-founder Othman Laraki told me in an interview. “The model that we’ve been developing, that’s been working really well, and we feel like this is the opportunity to really scale it in a very major way. I think literally what’s happening is the building of the public health infrastructure for the country that’s starting off from a technology-first model, as opposed to, what ends up happening in a lot of industries, which is you start off taking your existing logistics and assets, and add technology to them.”

Color’s 2020 was a record year for the company, thanks in part to partnerships like the one it formed with the the City of San Francisco to establish testing for health care workers and residents. Laraki told me they did about five-fold their prior year’s business, and while the company is already set up to grow on its own sustainably based on the revenue it pulls in from customers, its ambitions and plans for 2021 and beyond made this the right time to help it accelerate further with the addition of more capital.

Laraki described Color’s approach as one that is both cost-efficient for the company, and also significant cost-saving for the healthcare providers it works with. He likens their approach to the shift that happened in retail with the move to online sales – and the contribution of one industry heavyweight in particular.

“At some point, you build Amazon – a technology-first stack that’s optimized around access and scale,” Laraki said. “I think that’s literally what we’re seeing now with healthcare. What’s kind of getting catalyzed right now is we’ve been realizing it applies to the COVID crisis, but also, we started actually working on that for prevention and I think actually it’s going to be applying to a huge surface area in healthcare; basically all the aspects of health that are not acute care where you don’t need to show up in hospital.”

Ultimately, Color’s approach is to re-think healthcare delivery in order to “make it accessible at the edge directly in people’s lives,” with “low transaction costs,” in a way that’s “scalable, [and] doesn’t use a lot of clinical resourcing,” Laraki says. He notes that this is actually very possible once you re-asses the problem without relying on a lot of accepted knowledge about the way things are done today, which result in a “heavy stack” vs. what you actually need to deliver the desired outcomes.

Laraki doesn’t think the problem is easy to solve – on the contrary, he acknowledges that 2021 is likely to be even more difficult and challenging than 2020 in many ways for the healthcare industry, and we’ve already begun to see evidence of that in the many challenges already faced by vaccine distribution and delivery in its initial rollout. But he’s optimistic about Color’s ability to help address those challenges, and to build out a ‘last mile’ delivery system for crucial care that expands accessibility, while also making sure things are done right.

“When you take a step back, doing COVID testing, or COVID vaccinations is actually those are not complex procedures at all – they’re extremely simple procedures,” he said. “What’s hard is doing them massive scale, and with a very low transaction cost to the individual and to the system. And that’s a very different tooling.”

Optimizely acquired by content management company Episerver

Episerver is announcing that it has reached an agreement to acquire Optimizely for an undisclosed sum.

Optimizely was founded in 2009 by Dan Siroker and Pete Koomen. It became synonymous with A/B testing, subsequently building a broader suite of tools for marketers to experiment with and personalize their websites and apps, with more than 1,000 customers including Gap, StubHub, IBM and The Wall Street Journal.

The company had raised more than $200 million in funding from Goldman Sachs, Index Ventures, Andreessen Horowitz, GV and others. Earlier this year, it laid off 15% of its staff, citing the impact of COVID-19.

Episerver, meanwhile, was founded in Stockholm back in 1994 and offers tools for marketers to manage their digital content. Accel-KKR  sold the company to Insight Partners for $1.1 billion in 2018. (Today’s announcement describes Insight as a “strategic advisor and sponsor” in the acquisition.)

In a statement, Episerver CEO Alex Atzberger said this is “the most significant transformation in our company’s history – one that will set a new industry standard for digital experience platforms.” It sounds like the idea is to extend Episerver’s capabilities around content and commerce with Optimizely’s experimentation tools.

“The breakthrough combination of Episerver and Optimizely will transform digital experience creation and optimization, enabling digital teams to replace guesswork with evidence-based outcomes,” Atzberger said. “This, along with our shared mission to empower growing companies to compete digitally, makes me thrilled to welcome the Optimizely team to Episerver, as we prove there are no extraordinary experiences without experimentation.”

A company spokesperson said the deal is for a mix of cash and stock. The acquisition is expected to close in the fourth quarter of this year, with the companies remaining fully staffed and independent until then.

“Winning in today’s digital world requires delivering the best and most personalized digital experiences,” said Jay Larson, who replaced Siroker as Optimizely CEO in 2017, in a statement. “Episerver and Optimizely have a shared vision to optimize every customer touchpoint through the use of experimentation. Together, we will enable our customers to do more testing, in more places, with greater ease than ever before.”