Productivity app Quip, announced on Monday, that it has been acquired by cloud computing company Salesforce.com, inc. (NYSE:CRM).
Quip said that it will be able to expand Salesforce.com’s Salesforce Customer Success Platform with its productivity abilities. The company said it is excited to see how much it can extend its own reach with the help of CRM. Current Quip customers will still be able to use the startup’s app after the transaction is completed.
Quip both companies share a customer-first culture and agree on other social issues. It also noted that there is a large amount of possibilities available from mixing data, content and communication between the two companies.
An SEC filing from Salesforce.com reveals that the company is paying $582 million for Quip. It had a previous investment in the startup through its Salesforce Ventures fund. The app is a rival to Microsoft Corporation’s (NASDAQ:MSFT) Office 365 and Alphabet Inc’s (NASDAQ:GOOG,NASDAQ:GOOGL) Google Drive. A previous round of funding saw Quip raise $45 million.
Quip is the creation of former Facebook Inc (NASDAQ:FB) Chief Technology Officer Bret Taylor. Taylor, who is also an ex-Google engineer, developed the app to let teams work on the same document together. It has a focus on mobile use and companies pay between $12 a month and $25 a month to use it, depending on their size. Individuals can use the app for free, reports Fortune.
Salesforce.com CEO Marc Benioff told Business Insider that his main reason for buying Quip was Taylor. He described him as “the absolute rising stars of our industry” and said it was his “dream to work more closely,” with the Quip CEO.
CRM stock was down 1% as of Tuesday morning.
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