Yammer Inc., a social network for businesses, is buying its own piece of the document storage and collaboration market, becoming the latest contender to challenge Box Inc. and Dropbox Inc.
Yammer has acquired OneDrum, a 10-person U.K. startup that lets employees share files and work on them together over the Internet. Both companies are closely held and terms weren’t disclosed.
The acquisition follows Yammer’s $85 million funding round in February from investors including DFJ Growth and Meritech Capital Partners. Yammer, based in San Francisco, is used by more than 200,000 companies worldwide, including Ford Motor Co. and EBay Inc., providing Facebook-like features for internal corporate use. By adding software that lets employees simultaneously edit files, Yammer is jumping into a market where it’s thus far partnered with other companies.
“We’re trying to bring collaboration and social to all the places that people are working,” Yammer Chief Executive Officer David Sacks said today in an interview. People “want to share files where they’re having conversations.”
OneDrum was founded in 2008 and introduced its product last year. Jasper Westaway, the CEO, said the company has snagged a few early customers, including two of the top five strategy consulting firms.
Sacks, a top executive at PayPal Inc. before it was acquired by EBay, founded Yammer in 2008 and has since raised more than $140 million for the company.
While Yammer has a partnership with Box and plans to integrate with Dropbox, OneDrum’s product may allow some users to get rid of those accounts. Replacing them will not be easy though, as Dropbox has attracted more than 50 million users and Box has around 10 million. The startups also have deep pockets, having raised more than $400 million combined from venture investors.