On Sunday, software giant SAP announced its intention to acquire Mountain View, Calif.-based Gigya, a customer identity and access management platform provider. Though terms of the forthcoming sale have not been announced, analysts, including Constellation Research founder and analyst R Ray Wang, estimate the price to be around $350 million.

It is odd to release this kind of news on a Sunday, however leaks appeared in the Israeli press over the weekend, so it is probably safe to assume the companies wanted to control the messaging.

Once the acquisition is complete, Gigya’s identity access and management platform is expected to enrich SAP Hybris’ customer profile data-matching software to help companies target online customers more effectively and without reaching beyond a consumer’s self-selected boundaries.

Getting Identity Right

Getting identity right raises the odds of getting “yes” answers to questions like “Did you click on that ad?” and “Did you buy?” according to Wang. Identity is key not only in arriving at desired business outcomes but also in conversion rate optimization, he explained.

While Gigya makes it simple for companies to manage customer preferences, profiles, opt-in and consent settings, it also provides for customers with the ability to control their data at all times.

“Consumer trust is the main currency to succeed for customer-driven organizations. This is what Gigya is known and recognized for,” Carsten Thoma, president and cofounder of SAP Hybris, said in a statement.

Gigya’s registration-as-a-service (RaaS), which manages more than 1.3 billion customer identities, also speaks to GDPR requirements, according to Wang.

Customer Data Within Limits

In integrating SAP Hybris with the Gigya platform, “SAP Hybris intends to become the first organization to offer a cloud-based data platform enabling companies to profile and convert new customers, gather accurate conclusions from disparate consumer engagement sources and collect data for enhanced consumer choices that are in line with regulations,” stated SAP in a statement.

Commenting on Gigya’s acquisition by SAP, Patrick Salyer, CEO of Gigya said in a statement, “This is a vital step for digitalizing businesses because companies need to be able to draw accurate conclusions seamlessly across all channels, including web, mobile, in-store or connected devices, and the Internet of Things, as well as collect data about consumer preferences. Together we are well positioned to drive more effective marketing, sales and service through data, while the customer stays in control of how much data is shared."

Wang sees business wins far beyond the aforementioned including, but not limited to, blockchain.

The deal is subject to customary closing conditions, including regulatory approvals.