IPhrase acquiring Banter Systems
Marrying two companies that let people type plain-English questions to get information from online businesses, iPhrase Technologies Inc. of Cambridge is acquiring Banter Systems Inc. of San Francisco.
Terms of the all-stock purchase deal, which is being made public today, are not being disclosed. The combined company, which will remain privately held, will have about 100 employees, including 28 Banter engineers at a research and development facility in Jerusalem, about seven Bay Area Banter staff, and roughly 65 iPhrase employees in Kendall Square.
IPhrase has attracted customers including the Charles Schwab and TD Waterhouse investment firms, Nieman Marcus and Restoration Hardware, and networking equipment maker U.S. Robotics Corp. IPhrase sells systems that let people type complex queries at a website to get information about products and services.
Banter provides similar services, with an added focus on automatic responses to inquries sent by customers through e-mail or instant messaging. Both companies' services also can help companies automate the process of evaluating thousands of consumer complaints and survey responses to sift out strategic information.
IPhrase chief executive Daniel A. Keshian said in addition to Banter's talent pool and technology strength, it offers a large customer base and existing sales relationships with major software providers like PeopleSoft Inc. and Siebel Systems Inc. and corporate networking equipment maker Avaya Inc., the Lucent Technologies Inc. spinoff. The San Francisco office will also become an important base for iPhrase to grow West Coast sales, Keshian said. The combined company now has more than 150 customers.
IPhrase does not disclose revenues, but Keshian said they doubled in the last year and are forecast to double again this year, with the Banter acquisition contributing to accelerated growth. IPhrase has raised more than $36 million in venture capital funding from investors including Lexis-Nexis database owner Reed Elsevier PLC.
Peter J. Howe can be reached at howe@globe.com. 
