Dropbox to Acquire Software Company HelloSign
Dropbox, a maker of software for syncing and sharing files in the cloud, agreed to acquire HelloSign for $230 million in cash to add tools for digitally signing contracts and documents.
HelloSign, whose more than 80,000 customers include Instacart and Lyft, will remain an independent business. The San Francisco-based company already had a product for use in Dropbox and the two companies will work to get more Dropbox users to choose HelloSign for documents that require signatures. The deal is expected to close this quarter.
“This deal makes sense from a strategic standpoint for two reasons: 1) HelloSign seems like a positive complementary business product to sell; and, 2) The acquisition provides a potential opportunity to further expand enterprise sales and win more share of the customer wallet,” Mark Mahaney, an analyst at RBC Capital Markets, wrote in a note to investors on Monday.
DocuSign and Adobe also offer software for electronic signatures. Customers can embed the HelloSign software into web sites or include the tools in documents employees and customers need to fill out. For example, Instacart, which organizes thousands of personal shoppers to pick and deliver groceries to customers, uses HelloSign to help people complete the forms needed to join Instacart quicker.