Redkix, an Israeli email startup that provides tools to combines email, messaging and calendar features more effectively into one app has been acquired by Facebook. Facebook made the purchase in hopes of building out its own communication features inside Workplace, which is the enterprise version of Facebook.
Redkix has raised $20 million and has offices in both Silicon Valley and Israel, it had from investors including Salesforce Ventures, has offices in California and Tel Aviv. The social networking giant declined to say what it paid in the acquisition.
Facebook launched Workplace in 2016, which is a subscription-based social platform for businesses, is used internally by Facebook employees, is more like the regular, consumer version of Facebook which means that it has features like messaging and groups, but not more traditional office features like email and calendars.
Facebook is primarily an advertising business, but it doesn’t sell ads inside Workplace — it sells subscriptions. It is uncertain that how Workplace plans to integrate Redkix’s technology, although it makes sense why Facebook would want it.
More than 30,000 companies use Workplace by Facebook to collaborate with their colleagues and “get more work done”, a Facebook spokesperson said.
Redkix co-founders Oudi and Roy Antebi mentioned in a blog on the company’s website,”Bringing people closer together is at the core of Facebook,” Redkix co-founders Oudi and Roy Antebi said in a blog on the company’s website. “Workplace brings this mission to enterprises to make them more connected and productive.”
Facebook acquired Redkix’s talent and technology, which means some Redkix employees, including co-founders and brothers Oudi Antebi, CEO, and Roy Antebi, CTO, will join Facebook’s Workplace team. The Redkix app will shut down, informed one of the Facebook spokesperson.
Redkix and Facebook did not disclose financial details. A source close to the transaction told Reuters the value of the deal was less than $100 million.