ZoomInfo Acquires Dogpatch Advisors

On its earnings call last week, ZoomInfo announced a pair of acquisitions that closed on April 1: Comparably (discussed yesterday) and Dogpatch Advisors.

Dogpatch Advisors is a “modern sales advisory consultancy that helps enterprises scale revenue operations, build sales playbooks, use data and insights to create and refine sales, and build outbound operations functions.”  In addition, Dogpatch will “enable ZoomInfo to further drive Enterprise and Strategic revenue through expanded customer playbooks that utilize more data and product categories.” 

Dogpatch was immediately rebranded as ZoomInfo Labs, providing a “new go-to-market thought leadership team” that “drives go-to-market data analysis, product enhancements, and strategy for our enterprise customers.”

Dogpatch CEO Ben Salzman will be heading up ZoomInfo Labs.

“This will immediately expand our capabilities for enterprises and drive enhancements across our suite of products,” stated Schuck.  “Over time, we expect ZoomInfo Labs to put the modern go-to-market playbook within reach of every company.”

“Dogpatch Advisors is professional services and consultancy firm that helps enterprises build out their go-to-market efforts using data and insights and software to make those go-to-market efforts incredibly effective and efficient.  And when we talk with our customers and our prospects…they want a world where their go-to-market motions are driven by data, where our software is interconnected seamlessly, where they have the ability to run innovative sales playbooks, but they don’t have a pathway to get there.

What we’re hoping to do with ZoomInfo Labs is to provide a mechanism to help our customers see a future that’s innovative, that’s data-driven, where systems are integrated and talk to each other, where our data cloud sits at the foundation of that, and our application layer drives the interconnectivity of that motion… [ZoomInfo Labs] is designed to help our customers not only see that vision but then also achieve that.”

ZoomInfo CFO Cameron Hyzer

Both acquisitions closed on April 1 but were announced on May 2.  Individual deal terms were not disclosed, but the two firms were acquired for “approximately $145 million, inclusive of the purchase of a convertible promissory note and cash, net of cash acquired, subject to adjustments for working capital, transaction-related equity awards, and other customary adjustments.”

ZoomInfo also agreed to pay up to $28 million in equity awards “subject to continued employment and/or attainment of certain financial metrics.”

“We expect these acquisitions to contribute revenue in the low teens millions of dollars in 2022 and create a modest drag on margins of one to two points for the remaining quarters this year,” said Hyzer.

CEO Cameron Hyzer said that Dogpatch was more than an acquihire deal.  While it has a small employee base, Dogpatch has “relationships and a history of really delivering great go-to-market consulting engagements for large clients.”

“It’s a handful of people, but I think that they very much box outside of [its weight] class in terms of the value they’re able to deliver,” continued Hyzer.  “And we think that by bringing that on and being able to deliver those engagements that we’ll be able to further accelerate the solutions that we’re offering as well.”

SalesLoft Acquires Professional Services Partner InStereo

Sales Engagement vendor SalesLoft announced that it acquired professional services partner InStereo.  InStereo, founded in 2018 by Bill Galfano and Adam Post, was an early ecosystem partner that has grown alongside SalesLoft.  Last year, SalesLoft named them their “Partner of the Year.”

“We were impressed by their focus on what the customer is trying to achieve,” SalesLoft President and Chief Strategy Officer Rob Forman told GZ Consulting.

As a partner, InStereo helped “B2B Sales and Marketing teams better engage with buyers to create more demand, authentically engage prospects, and convert prospects into delighted customers.”

“Bringing InStereo directly into the SalesLoft family is a key way we are investing in our customers’ success.  Our customers will benefit from InStereo’s deep understanding of buyer journeys and engagement strategies.  Their experience and proven enterprise methodologies will help customers operationalize the SalesLoft platform and accelerate the value of Sales Engagement across their entire revenue organization.”

SalesLoft CEO Kyle Porter

InStereo focuses on go-to-market and implementation strategy for SalesLoft, HubSpot, and Salesforce delivered through a pair of consulting services:

  • Buyer Experience Strategy focuses on the buyer’s journey, ICP, demand unit persona, and the “buyer engagement blueprint.”

    “We believe customer journey maps are more than just wall art,” states InStereo.  “We create buyer journeys you can activate.  By understanding how buyers approach the purchase process, sales and marketing teams can better align people, process, and content to deliver just what buyers need, when they need it.”
  • Buyer Engagement Services pairs clients with a Strategist and Revenue Consultant to assist with enterprise software implementations.  For SalesLoft, they focus on “1:1, personalized engagement via cadences” and process automation.  For marketing automation, InStereo assists with nurture campaigns and optimization, and for CRM, they focus on leveraging CRM capabilities and improving data quality.  Other services include SalesLoft Admin as a Service and sales development services.

“At SalesLoft, our goal isn’t to just sell software; it’s to help our customers exceed their revenue goals,” said SalesLoft CRO Steve Goldberg.  “Too many times software companies focus on features and technology, not the success of their customers.  InStereo shares our passion for helping our customers get the outcomes they’re looking for.”

InStereo’s customers skew towards enterprise implementations.  SalesLoft “plans to take their methodologies into new areas of our business,” expanding InStereo beyond the technology vertical into financial services, SalesLoft’s second-largest vertical.

InStereo has completed over 150 customer engagements.  Joint customers include Cargill, Pegasystems, and 3M.

“This past year we tripled our investment into our alliance organization and programs because empowering our partners leads to success for our customers,” said Forman.   “InStereo leveraged the power of our partnership and consistently drove incredible outcomes for our mutual customers.”

All twenty InStereo employees will be joining SalesLoft, including their two founders and Carrie McGrew, InStereo’s VP of Strategy.  In addition, Galfano will be joining the CRO Leadership Team as the SVP of Consulting Services.

SalesLoft did not provide any pricing deals on the acquisition.