Today, tech giant Microsoft announced its acquisition of software service company Ally.io at an undisclosed amount. Ally.io assists companies with analytics to measure their progress against Objectives and Key Results (OKR) which is a common method that companies use to measure both individual and company progress.
After the deal has been completed, Ally.io will be integrated into Microsoft’s Viva family of employee experience products. According to Microsoft, the reason for acquiring Viva and Ally.io, is to provide a more transparent way to communicate company goals and objectives to employees. In a blog post announcing the Ally.io acquisition, Microsoft’s Chief Operating Officer and Corporate Vice President in charge of experiences – Kirk Koenigsbauer wrote that “Aligning employee work to the company’s strategic mission and core priorities is top of mind for every organization. To do this, leaders need to invest in tools that communicate transparency around big company bets and create ways to cascade aspirational goals and report results at all levels of an organization”.
“As a part of Microsoft Viva, Ally.io will continue to give leaders, teams and individuals the ability to align and focus everyday work to the company’s most important objectives. We will help bring goals and purpose to wherever the team is doing work including Teams, Outlook, Slack and the other systems you use every day”, Ally.io’s founder and CEO Vetri Vellore wrote in a blog post published on the company’s website.
The price of its Ally.io acquisition was undisclosed by Microsoft but records from PitchBook shows that Ally.io last raised capital at a $345 million post-money valuation and that the price was set when the company raised $50 million for a total of $76 million raised earlier this year.
Microsoft’s acquisition of Ally.io could be the start of a new consolidation round in the Objectives and Key Results (OKR)-focused software market where many other competitors like WeekDone, Koan, WorkBoard, etc., are eyeing the top spot in the market.
Ally.io has its headquarters in Seattle, Washington and was founded by Vetri Vellore. Ally.io’s OKR solution was built by Vetri Vellore as an internal tool to assist his team at his previous enterprise SaaS company. The company has grown into one that brings purpose and breakthrough productivity to work and helping businesses increase growth.
It is still quite unknown how the acquisition would affect the market but in the coming weeks, this should be clear.