Capillary Technologies Acquires Kognitiv To Strengthen Global Leadership In Loyalty Management

IPO-bound enterprise tech startup Capillary Technologies has acquired Canada-based marketing tech company Kognitiv for an undisclosed amount.

Capillary said the deal will help it grow globally and strengthen its presence in North America. The acquisition is part of its plan to expand through mergers and acquisitions.

With Kognitiv, Capillary aims to boost its technology, improve customer engagement, and offer more personalised, data-driven experiences throughout the customer journey.

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"This acquisition represents a pivotal moment in Capillary's journey to change how brands build meaningful customer relationships.Kognitiv's expertise in omnichannel loyalty solutions and their presence in North America complements our global expansion strategy. Together, we aim to deliver innovative and effective loyalty solutions that create genuine value for both brands and their customers," said Aneesh Reddy, cofounder and CEO of Capillary Technologies. 

Jim Sturm, President of North America at Capillary Technologies, added, "We've been strategically expanding our loyalty capabilities through targeted acquisitions since 2021. With Persuade, Brierley+Partners, and Tenerity's Digital Connect Assets (now Rewards+) already under our umbrella, the addition of Kognitiv enhances our technological capabilities and expands our global reach."

Tim Sullivan, CEO of Kognitiv, said "Joining forces with Capillary Technologies marks an exciting new chapter for Kognitiv. Our shared vision of inspiring lifetime loyalty through deeper customer relationships makes this a natural fit. Capillary's technological expertise and global presence, combined with our specialized loyalty solutions and established client relationships, will look to create new opportunities for innovation in the loyalty space."

Last month, Kognitiv filed for bankruptcy protection in the US after building up over $10 million in debt.

Capillary, backed by Warburg Pincus and planning to go public later this year, has now made its third acquisition in North America.

Over 60% of its revenue comes from the US. With this deal, Capillary will gain access to 30+ enterprise clients, including top hotel brands across Australia, New Zealand, the UK, the Middle East, and the US, the company said.

About Capillary Technologies

Founded in 2008 by Aneesh Reddy, Capillary Technologies provides complete customer engagement tools to help brands keep their customers through personalised communication across multiple channels. It also offers a customer data platform and a rewards network.

The company says it works with over 100 brands, including IndiGo, Domino’s Pizza, Pantaloons, Malabar Gold & Diamonds, and Vishal Mega Mart. Apart from India, it also serves clients in the US, the Middle East, and Southeast Asia.

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