What changes for customers after the acquisition of DocSend by Dropbox?
Feb 14, 2022
On March 22, 2021, the file-hosting company Dropbox concluded the acquisition of DocSend, a secure document-sharing platform used by 17,000 clients worldwide. The acquisition is intended to expand on Dropbox’s product offer and increase the already-existing integration between the two platforms.
Perspectives of the acquisition
Following Dropbox’s acquisition of DocSend, there haven’t been immediate changes for customers of the two platforms. Impacts on operating results are expected only from 2022 onwards when increased integration between the Dropbox smart workspace and DocSend’s secure sharing and analytics features will allow users to collaborate on documents more easily and securely.
What is Dropbox?
Dropbox is an American provider of software services founded in California in 2007. The main services it offers are storage and synchronization of files in the cloud, personal cloud, and client software. In its mission statement, Dropbox says it aims at reducing work disruptions by offering its clients tools that help them stay organized, focussed and in sync with their teams. According to Statista, by 2020 Dropbox had over 15 million paying users worldwide.
Since October 2018, Dropbox offers its users Extensions, a system of app integrations that allows them to work on over twenty other apps from within the Dropbox platform. Dropbox extension partners include:
- email and messaging apps
- video recording and sharing apps
- document analytics and e-signature apps
- apps for design creation.
What is DocSend?
DocSend is a document-sharing platform founded in California in 2013. Their mission statement reports that the company aims to “consolidate common workflows for sending documents externally into one intuitive solution” by providing its clients with tools for secure document sharing and comprehensive analytics.
DocSend has been a Dropbox extension partner since November 2019. Starting from then, Dropbox users have been able to use DocSend security features and document analytics without leaving the Dropbox platform.
DocSend’s partnership with Dropbox has contributed to a sharp increase in the former’s client base. At the time it became an extension partner, DocSend had 10,000 clients worldwide. In the last two years, that number has gone up to 17,000.
Reasons for the DocSend acquisition
By acquiring Docsend, Dropbox takes advantage of opportunities created by the rise in remote work brought about by the Covid pandemic. According to Dropbox CEO Drew Houston, “there’s increased demand for digital tools that help people organize their content and seamlessly collaborate with each other. DocSend is a perfect complement to our product roadmap and we’re thrilled to welcome them to our team.”
DocSend CEO Russ Heddleston said about the acquisition: “By joining Dropbox, we’ll be able to rapidly scale, bringing our vision and capabilities to the hundreds of millions of people around the world who already trust Dropbox with their most important content.”
Other DropBox acquisitions
The acquisition of DocSend by Dropbox is the latest in a series of 25 acquisitions made by the file-hosting multinational since its foundation. Other software services acquired by Dropbox in the last ten years are:
- e-signature tool HelloSign
- buyers rewards app Endorse
- communication service Clementine
- workplace messaging solution Zulip.
So far, the total amount spent by DropBox on acquisitions is over $503 million. DocSend was acquired for $165 million.
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