At the time of the deal for Salesforce to acquire Rypple, I wrote this post related to why it made sense to me. At the time, there wasn't any info on what Salesforce paid for the company, and a couple of Google searches show little info out there now on the specs. So let's share!
Fortune reports in this article accompanying their "Best Places to Work" issue that Salesforce paid $60 Million to acquire Rypple, that SuccessFactors had a higher bid in play, but Rypple decided to take less to go with overall culture and "fit". More from Fortune:
"It took a Reuben sandwich and Dr. Brown's Cream Soda to close the deal.
Nobody's as good at salesmanship in the world of high tech as Marc Benioff, the nimble and gregarious 6-foot-5, 290-pound co-founder and CEO of Salesforce.com. A few months ago, his burgeoning company -- the San Francisco-based powerhouse in cloud computing for businesses -- was looking to buy Rypple, a startup in Toronto that specializes in human resources apps. The two companies had already had several rounds of discussions. In late October, the 47-year-old Benioff was in Manhattan to speak before the G100 conference of executives. So were Daniel Debow and David Stein, the 38-year-old co-founders of Rypple.
The night before, Benioff took them to San Pietro, the Midtown Italian restaurant where he holds court every time he's in town: "Right over there is where I sent my favorite California Cabernet to King Abdullah of Jordan -- to say thank you for helping to build peace in the Middle East!" And the king was so impressed he sent his bodyguards back to the hotel "to bring me one of his famous beautiful watches!" Benioff has told the tale so many times at the restaurant that the waiters can recite it. He made sure that Stein, a wine buff, got the same bottle of Dalla Valle as the king.
After attending G100 events the next day, Benioff suggested that he and Debow hit the renowned 2nd Avenue Deli for lunch. (Stein had to go back home.) There weren't any tables, so Benioff got them seats at the corner of the counter. And he ordered up the full array: corned beef, sauerkraut, and melted Swiss on rye, with lots of dressing; matzoh ball soup; chopped liver; chased with warm assorted rugelach. They didn't talk business. "We just kibitzed," Debow says. Soon thereafter, Rypple took Salesforce's $60 million, turning down a richer offer -- from SuccessFactors, which was just bought by SAP, one of Salesforce's archrivals. "It wasn't only about deal terms, but corporate culture," Debow says. "We barely met the other CEO." Debow says he sensed Benioff was the kind of person "we could deliver our company and employees to … that we entrepreneurs could be part of their family. Nobody can keep up the artifice over a couple hours of sharing pickles."
Personal attention and cultural fit made Rypple take less and go with Salesforce? Bravo and a cautionary tale for the value of C-level involvement in many things. Congrads again to Rypple and Salesforce.