Allurent, Previously Reported Closed, Finds New Life at Jenzabar
This is a startup survival story for the books. Allurent, which the tech media reported as defunct last month, has gotten new life through an acquisition by Boston-based Jenzabar, a maker of higher education enterprise software. What’s more, Allurent, which develops interactive widgets for enhancing e-commerce storefronts, never stopped doing business, says Jenzabar CEO Robert Maginn. The acquisition was first reported by Dow Jones VentureWire today.
Jenzabar and Allurent have been connected long before this deal, in which Jenzabar will own 100 percent of Allurent and will invest a “seven-figure sum” in Allurent over the next 12 months, according to Maginn. The exact dollar value of the deal was not disclosed. Allurent was founded in 2005 by a group of veterans from Art Technology Group (NASDAQ: ARTG), the e-commerce software maker that sold to Oracle (NASDAQ: ORCL) late last year for $1 billion. Maginn was an investor in ATG and Allurent, which raised about $14 million, through his investing vehicle New Media Investors.
“The only mistake they really made was not anticipating that the economy was going to come crashing down,” says Maginn of Allurent, which had shrunk in recent years and saw an acquisition deal fall through in the fall of 2010, leading to the reports of its demise. ”I was surprised when the deal they were set to do in September and October abruptly fell apart. We had to take a step back and think about the Allurent business and potential applications to our business.” Jenzabar started putting together a deal with Allurent late last year, and even hired on some of the staffers to work on Jenzabar, he says.
Through the deal, Allurent will become a wholly owned subsidiary of Jenzabar, which makes software that powers and supports “every office you can think of on campus,” from admissions to billing to financial aid, Maginn says. The technology also powers online courses and e-commerce sites for selling university paraphernalia. Allurent’s products will help make the e-commerce applications with Jenzabar more interactive, and Jenzabar vice president Chris Hartigan will act as general manager of Allurent. Meanwhile, Allurent will … Next Page »