New York-based Snappy, a leading corporate gifting platform, has announced its acquisition of Covver, a Tel Aviv-based corporate merchandise gifting platform. The terms of the deal remain undisclosed, but TechCrunch reports that it involves a mix of cash and shares.

Covver, which has raised $7 million to date, specializes in swag-style merchandise for companies and offers points-based recognition solutions for employees. Its platform is known for its AI-powered personalization capabilities, allowing users to create customized products with minimal effort. For instance, users can send swag with a person's job title, and the system will automatically create the product with the title on it, eliminating the need for graphic design.

In an interview with TechCrunch, Hani Goldstein, Co-Founder and CEO of Snappy, highlighted the strategic value of the acquisition. "Covver's expertise in swag and company store solutions complements Snappy's ability to deliver these kinds of gifting experiences," she said. "The platforms will be unified, with Covver effectively becoming the 'swag channel' on Snappy's platform."

Goldstein emphasized the potential of the combined platform to revolutionize the corporate gifting industry, which is valued at around $260 billion globally. "What Covver built was an amazing experience for swag that's based on AI and does it extremely well and innovatively," she said. "We want to make gifting easy, but still keep the magic and personalization."

The acquisition is seen as a significant move in the corporate gifting space, where Snappy competes with other major players such as Sendoso, Postal, and &Open. Snappy, which has raised over $125 million to date, claims to have over 47% of Fortune 100 companies as clients, including Microsoft, Amazon, and Comcast.

In a statement, Roee Hemed, CEO of Covver, expressed enthusiasm about the deal, saying, "By joining forces with Snappy, we're unlocking new possibilities for our customers, including expanded product solutions and the ability to leverage Snappy's trusted gifting platform."

The acquisition is expected to enhance Snappy's offerings and further establish its position as a leading corporate gifting platform. As the market continues to grow, Snappy's expanded capabilities are likely to have a significant impact on the industry.

In the context of the broader corporate gifting market, Snappy's acquisition of Covver highlights the increasing importance of personalized and innovative gifting experiences. As Goldstein noted, "There's about $50 billion worth of gift cards, only in the US. But people don't know what to buy, so they use gift cards. So that provides choice, right? But that it becomes very transactional. It's like 'Hey, Mike, here's 100 bucks!' But I wanted to make you feel delighted."

The deal is a testament to the growing recognition of the value of corporate gifting in fostering brand appreciation and employee engagement. As the market continues to evolve, it will be interesting to see how Snappy's expanded platform shapes the future of corporate gifting.