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Microsoft purchases Parature in $100M deal- sources

(Credit: Parature) Image shows a screenshot capture of the website of Parature.Parature
January 6
9:25 PM 2014

Sources told TechCrunch that Microsoft has bought Parature for a price tag of $100 million. Parature is a customer service SaaS provider. Its flagship product is the "Parature Customer Service Software" currently supports over 70 million end users around the world. The platform integrates a customer portal, a self-service knowledge base, help desk ticketing application and other business modules into a central and fully-customizable web-based system, according to information found on the company's website.

TechCrunch reported that the acquisition will provide the CRM platform of Microsoft, Microsoft Dynamics, a world-class knowledge base that will allow it to connect with their customers through different channels. Parature was established in 2000 in a Cornell University dorm room when Co-Founder Duke Chung and his classmates built Cyracle, a chat application for online help. Three years later, they changed the name of their company to Parature, a blend of "Paradigm of the Future" and transferred their headquarters to Reston, Virginia.

Parature is backed by Valhalla Partners, Sierra Ventures and Accel Partners. The private equity firms gave a total of $30.2 million to Parature which has grown from having only 35 million users in 2011 to 70 million today.

TechCrunch reported that the purchase serves to fill a gap for Microsoft which does not yet have a customer service fitting the modern client who seeks to find solutions to their own problems instead of calling a toll-free customer service number. According to Microsoft Dynamics CRM Senior Director Strategy and Planning Bill Patterson, Parature will help Microsoft widen its capability and better compete against market leader

In a Skype interview, Constellation Research Founder Ray Wang told TechCrunch that the knowledge base is what makes Parature different from the rest. The company's knowledge base has been re-architected so that it is the most modern one in the market, integrating context, search, prediction and learning, Wang said.

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