In its second-largest acquisition, Amazon buys the company for $970 million.
The company recently opened a customer support and technology center in Los Angeles, as it steps up its efforts to increase sales in the United States on the heels of 55% worldwide growth in e-commerce technology and services last year.
EPiServer AB, a Stockholm, Sweden-based provider of e-commerce technology and services for business-to-business as well as retail e-commerce operations, is looking to the United States to help maintain growth rates of well into double digits over the past several years, the company says.
“2013 was a great year for the company and 2014 is on track to be just as exciting—if not more,” says Marty Leamy, president at EPiServer US, which is based in the Chicago suburb of Oakbrook Terrace, IL.
EPiServer, which is privately owned and does not report revenue figures, says its global sales of e-commerce technology and services increased 55% last year over 2012, while its sales of cloud or Internet-hosting technology increased 77%. The company provides its e-commerce and content management system technology as licensed, on-premise software, or in a software-as-a-service model, or SaaS, which lets clients rent software hosted by EPiServer that they access through a web connection.
With its cloud-based technology services, EPiServer will host a client’s web site with either the licensed or SaaS versions of its e-commerce or content management software. Clients can also opt for the hosted services through EPiServer’s Everweb managed services offering, through which the vendor maintains a web site to ensure its continuous operation, letting client focusing on managing their online merchandising and marketing. Over the past nine years, the company says its revenue has grown at a compound annual growth rate of 27%.
“EPiServer is poised to become a one-stop shop for those looking for scalable leading-edge digital solutions in marketing and e-commerce,” the company says. The EPiServer technology platform is built on .Net technology developed by Microsoft Corp. and is used on more than 20,000 web sites worldwide, it adds.
In a change in strategy for serving the U.S. market compared with its traditional way of working with clients in Europe, EPiServer is having its staff experts get more directly involved in client technology projects, says Donna Pahel, director of digital marketing and e-commerce strategy for North America. Instead of letting clients work mostly through consulting firms hired to deploy EPiServer’s technology, as is common in Europe, EPiServer recently opened a Los Angeles technology center staffed with technology experts and account managers who work in teams to provide on-site assistance to clients and consulting firms during project roll-outs, she adds.
“EPiServer in North America is more involved in direct relationships with customers than in Europe,” Pahel says. “They expect that. We’ve found the North American customer expect to have us more directly involved.” The company is continuing to expand the technology center’s current staff of about 12 people, she notes. EPiServer’s North American clients include the U.S. e-commerce site for Italy-based Moleskine, a manufacturer, distributor and retailer of upscale notebooks, briefcases and other business products; and Reyes Holdings, a food products wholesaler and distributor.
EPiServer, which was founded in 1994, is controlled by the IK2007 Fund, a part of IK Investment Partners, a European private equity firm managing €5.7 billion euros (US$7.8 billion) in investments. In addition to Sweden and the U.S., EPiServer has facilities in Denmark, Norway, Finland, Netherlands, South Africa, Australia, Spain, UAE and the United Kingdom.
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