Facebook acquired CRM startup Kustomer.com for a reported $1 billion

We last covered Kustomer.com back in 2018 when the customer relationship startup raised $26 million in funding to modernize the customer experience. Now, the company has now been gobbled up by Facebook.

In an announcement yesterday, Facebook said it plans to acquire the New York-based startup Kustomer. Even though the financial terms of the deal were not disclosed, many media sources said the deal is valued at around $1 billion. The deal is subject to customary closing conditions and regulatory approval.

As part of the acquisition agreement, Facebook said that Kustomer businesses will continue to own the data that comes from interactions with their customers. However, Facebook said it expects to eventually host the Kustomer data on secure Facebook infrastructure. In a blog post on its website, the social media giant said:

“Facebook has reached an agreement to acquire Kustomer, a top-rated CRM that enables businesses to effectively manage all customer interactions across channels. Our goal with Kustomer is simple: to give businesses access to best-in-class tools that deliver excellent service and support. As businesses adjust to an evolving digital environment, they’re seeking solutions that place people at the center, especially when it comes to communication. Any business knows that when the phone rings, they need to answer it. Increasingly, texts and messages have become just as important as that phone call — and businesses need to adapt.”

In a separate blog post, Brad Birnbaum, CEO of Kustomer, said: “We are delighted to share with you the next step in our journey and the news that we have signed an agreement to be acquired by Facebook subject to customary regulatory review.”

Kustomer was founded in 2015 by a team of industry veterans, Brad Birnbaum and Jeremy Suriel, who know the space like the back of their hands. The founders have built some amazing companies in the past and have sold 5 companies to some of the biggest names in the business. The New York City-based Kustomer.com is the first platform built around the customer, bringing together everything you need to serve your customers better in one easy-to-use place.