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Slack Purchases Rimeto for Undisclosed Price

On Wednesday, it was announced that business communications company Slack (WORK) purchased startup company Rimeto for an undisclosed sum. Slack plans to continue Rimeto operations as a standalone application. Rimeto is a four-year-old startup company that offers detailed employee directories and profiles aimed at supporting the corporate environment.

In 2016, Rimet was founded and self-funded by three ex-employees of Facebook (FB). Impressively for a new company, Rimet was cash-flow positive all the way until their first investment three years after its start. In 2019, the company obtained a Series A $10 million investment

It was a personal experience that drove Slack’s interest in purchasing a company like Rimeto. Slack’s CEO, Stewart Butterfield, explained in an interview with Forbes that following the company’s temporary closure of offices this year due to COVID-19, they added a few hundred new employees, all of whom had only had the opportunity to meet fellow colleagues through chats and video conferences. Through the purchase of Rimeto and with its more full and detailed profile capabilities, Slack is hoping to personalize the employee experience more given the challenges many companies are facing with remote working.

With the purchase of Rimeto, Slack plans to make some changes and updates to the app, including working with Okta (OKTA) to incorporate a system to provide identity authentication. By making identity updates, the system could be used better across different companies. Okta is a current Slack partner based out of San Francisco-based that focuses on access management and privacy services.

Slack closed the market Wednesday with an 8.77% increase at $34.24.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.


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