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The latest from the Online Community Results blog

Analysis: Higher Logic’s acquisition of Socious

Last week, we reported that Socious had been acquired by Higher Logic, which recently received a $55M round of private equity funding. Higher Logic co-founder Andy Steggles and I had a chat, and a Q&A from that conversation was posted to this blog. Since Socious and Higher Logic are the two largest community software vendors in the association market, I thought a little analysis of the deal would be in order. As someone who has followed these companies closely for years, I’ll also opine a bit on the deal and make some predictions. Here are some of the acquisition’s implications: Higher Logic and Socious were the market leaders. I’ve always described Higher Logic as the 800 Pound Gorilla in the association community business. Higher Logic can now boast close to — perhaps more than — 1,000 clients. Most of them are associations. Combined, Socious and Higher Logic command a huge lead over the next closest competitor focused on the association market, Small World Community from Personify (formerly Small World Labs). Despite speculation that Higher Logic would need to make a hard pivot towards the for-profit market in order to pay back their investors, the Socious acquisition reinforces Higher Logic’s commitment to the association market. However, both companies have respectable portfolios of for-profit clients. Socious and Higher Logic were both usually on the short list for online community acquisitions. Most organizations want bids from three vendors. Now two of those three slots have been reduced to one. This acquisition creates space in the market, which is a big opportunity for another online community vendor to establish a presence in the association sector. Community vendors in... read more

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