Xactly acquires Obero
Xactly, which provides cloud-based incentive solutions, has acquired Obero, a sales performance management company. The acquisition adds ASC 606 / IFRS 15 compliant sales planning and new incentive management capabilities to its portfolio of offerings.
Xactly also recently bought AlignStar, which makes territory management software. According to Xactly, Obero adds to AlignStar’s capabilities, as it helps customers have the right staff, cover the right locations, and create data-driven plans.
Obero will be folded into the Xactly, and the company expects "many" team members to join it during the transition, chief marketing officer Micheline Nijmeh told Accounting Today.
The new ASC 606 / IFRS 15 revenue recognition standard that recently went into effect for public companies is significant for businesses still managing incentive compensation on spreadsheets. While commission expense accounting or the costs associated with obtaining a contract represent a small portion of the standard, it’s important for businesses that pay commissions to remain compliant. With these acquisitions, Xactly aims to provide its users with an end-to-end solution for capturing, tracking, recording and reporting commission data at the level needed for capitalizing commission expenses in accordance with the new guidelines.
Through Xactly’s expanded offerings, users will also be able to report commission expenses based on their needs, ensure GAAP compliance, and integrate commission data with existing financial systems.
Obero’s additions to Xactly include revenue, expense and profitability management. These capabilities are especially relevant in managing commissions for companies with subscription-based and recurring revenue models. Workforce and capacity management features are also aimed at helping organizations improve financial management with accurate forecasting and planning for all compensation-related costs.
“Xactly continues to enhance our strategic roadmap with the innovative technologies our customers need to compete and win in their respective markets,” said Christopher W. Cabrera, founder and CEO of Xactly Corporation, in a statement. “The new revenue recognition standard has the potential to be a disruptive force for sales and finance alike. With this acquisition, we are accelerating our ability to help customers meet this challenge while creating a world-class sales organization driven by intelligent planning and execution across the sales lifecycle.”
Financial terms of the acquisition were not disclosed.