Capillary Technologies, a Bengaluru-headquartered Software as a Service (SaaS) company specializing in customer loyalty and engagement, has announced its acquisition of Session M from global payments technology company Mastercard. The transaction is valued at $20 million. This strategic move aims to integrate Session M's customer engagement and loyalty platform into Capillary's existing suite of offerings, further strengthening its market position.

The acquisition comes as Capillary Technologies seeks to expand its global footprint and enhance its product capabilities in the competitive customer relationship management (CRM) and loyalty technology sectors. Session M, originally acquired by Mastercard in 2019, operates as a comprehensive loyalty and engagement platform that provides businesses with tools to personalize customer interactions and drive retention.

For Mastercard, the divestiture of Session M aligns with its strategy to streamline operations and concentrate on its core payment and financial technology services. The company has been re-evaluating its portfolio to optimize its focus on areas directly linked to its primary business model. The $20 million transaction signifies a strategic realignment for both entities involved.

Key aspects of the acquisition include:

  • Transaction Value: Capillary Technologies will acquire Session M for $20 million.
  • Strategic Rationale for Capillary: The acquisition is expected to bolster Capillary's loyalty platform, providing enhanced features and a broader client base. It will integrate Session M's technology and expertise into Capillary's existing software solutions.
  • Strategic Rationale for Mastercard: The sale allows Mastercard to divest a non-core asset and reallocate resources towards its foundational payment processing and financial services offerings.
  • Market Impact: The move is anticipated to intensify competition in the loyalty management software market, with Capillary aiming to gain a larger share by incorporating Session M's capabilities and customer base.

Capillary Technologies, which serves over 250 brands across 30 countries, plans to integrate Session M's technology, intellectual property, and key personnel into its operations. This integration is designed to ensure continuity of service for Session M's existing clients and to accelerate the development of combined offerings. The merged entity is expected to provide a more robust and comprehensive loyalty and customer engagement platform for businesses globally, ranging from retail and hospitality to financial services.

Following the announcement, the focus will shift towards the seamless integration of Session M's technology and client portfolios into Capillary's ecosystem. Both companies are expected to work towards a smooth transition, ensuring that customer services and platform functionalities remain uninterrupted. This acquisition represents a significant step for Capillary Technologies in its growth strategy within the global SaaS market.