Freelancer.com buys Escrow.com for $7.5 million
One of the hardest parts of freelancing is getting paid. One of the most challenging aspects of working with freelancers, especially spread out geographically, is paying them. As a result, tech firms have seized that window to provide solutions for connecting freelance professionals with cash flow.
On this blog, we discussed the Elance-oDesk merger, which helps connect freelancers with jobs. This week, it was announced that Freelancer.com has purchased Escrow.com for $7.5 million in an effort to make fund transfers in freelance relationships go more smoothly. Escrow.com allows money to be held securely until a transaction has been completed.
"Freelancer.com already has a version of escrow services called Milestone Payments, which means the site holds funds from an employer until it is released to a freelancer following the completion of a service or a dispute resolution. Holding payments is designed to give employers some peace of mind, especially after the site's rapid growth through a series of acquisitions starting in 2011…" explains Tech Crunch.
Despite their efforts to streamline payments, many users have complained that the Milestone platform doesn't deliver in a timely manner. For that reason, Escrow.com could help provide more reliable and efficient service to users and improve its value proposition.
Mergers and acquisitions can give companies access to technology that solves operational issues in their existing product and service offerings. In this case, Freelancer.com could lose users if it doesn't address the concerns current members have about payments.
With the guidance of an experienced M&A advisor, businesses can pursue and seal the most appropriate merger or acquisition deal to meet their growth objectives. Contact us today to learn more about our solutions for tech companies hoping to secure a satisfying deal.