Webflow, the web design and hosting platform, has recently ventured into the realm of marketing optimisation, marking a significant expansion for the company. With a valuation of $4 billion and having raised over $330 million, Webflow is making strategic moves to broaden its reach.
Today, Webflow made an announcement about its acquisition of Intellimize, a startup that uses AI to customise websites for individual visitors. Webflow did not make the details of the agreement public. According to an insider familiar with the matter, Eltrys learnt that the purchase price fell within the “eight figure” range.
A significant portion of the Intellimize team, consisting of approximately 50 individuals, will be transitioning to Webflow. However, a number of employees either accepted outplacement packages or faced layoffs, receiving severance. Webflow has chosen not to disclose the exact number. 
The CEO of Webflow, Vlad Magdalin, expressed that Intellimize was a perfect match for Webflow’s inaugural acquisition. This is due to the fact that Intellimize’s product addresses a common requirement among Webflow customers: the ability to personalise and optimise their websites.
“Our diverse customer segments all share a common goal: creating professional websites that not only have a visually appealing design but also deliver tangible business outcomes. We have received numerous requests from our customers and partners to assist them in enhancing their websites’ ability to attract new customers even after the initial development stage,” stated Magdalin. “Intellimize quickly gained recognition as an impressive product in this field, receiving high praise from marketing and growth leaders.” It became clear that by joining forces with our respective products and teams, we can create a significantly more powerful combination.”
Guy Yalif, along with Brian Webb and Jin Lim, co-founded Intellimize in 2016. Yalif had previously been Twitter’s head of vertical marketing. During Yalif’s tenure at Yahoo, he collaborated with Lim, who served as Yahoo’s VP of Engineering, and Webb, an architect on Yahoo’s personalised content recommendation team.
Yalif, Webb, and Lim created Intellimize by leveraging their extensive marketing expertise to develop a platform capable of producing personalised web pages in real-time.
What’s the motivation behind it? According to statistics cited by Porch Group Media, a significant majority of customers, specifically seventy-four percent, express frustration when they encounter a website that lacks personalised content. Companies that implement personalised reports experience not only a boost in revenue but also a more effective allocation of marketing resources.
Intellimize employs artificial intelligence (AI) to create pages that automatically adjust according to user behaviour and traffic sources. Companies develop a website template, and Intellimize’s AI conducts experiments, adjusting different elements to find the most effective results for visitors.
Other companies are also involved in this type of work.
Amazon’s Personalise has the ability to generate customised products and search recommendations for the web. Businesses such as Evolv AI and Optimizely, under Episerver’s ownership, employ algorithms to automate particular forms of A/B web testing. There are several innovative platforms, such as Adobe’s GenStudio, Movable Ink, Mutiny, and Blend, that are revolutionising experience personalisation through the use of generative AI technology.
Intellimize, through its impressive technology, strategic partnerships, and effective advertising, has successfully gained a significant presence in the AI-powered marketing industry.
During the acquisition, Intellimize garnered significant investments from prominent firms such as Cobalt Capital, Addition, Amplify Partners, and Homebrew. Notably, they had established a strong client base, including Sumo Logic, Dermalogica, and ZoomInfo.
“The Intellimize team had already developed a majority of the personalisation and optimisation tools we were considering creating internally. Additionally, they had a remarkable list of enterprise customers who were successfully utilising their solution,” Magdalin stated. “The team and product showcased exceptional proficiency in machine learning and AI, enabling website personalisation and conversion rate optimisation. We believe that this would greatly enhance Webflow’s current platform.”
What can Intellimize customers anticipate in terms of changes as the company becomes a part of Webflow? According to Yalif, there aren’t many disruptive ones. Intellimize will be available for purchase as a standalone product for customers who do not use Webflow. However, Webflow services will also have a closer connection and integration with Intellimize. Yalif, on the other hand, will be joining Webflow as the “head of personalisation,” overseeing the development of personalisation products at Webflow.
“By joining Webflow, we can expand and greatly speed up our progress,” Yalif said.
Webflow is expanding its comprehensive solution for website creation, design, and enhancement. Intellimize forms the core of the vision’s personalisation and optimisation aspects. We have the potential to compete with major players in the digital experience industry, despite their larger size, higher costs, and more complex platforms.
Here’s Magdalin’s perspective:
With Intellimize integration, we are expanding our primary audience beyond designers and developers. In the initial phase of the merger, our main goal is to seamlessly integrate our products. This means that customers can look forward to enjoying the combined strengths of Webflow and Intellimize in a unified product experience by the end of this year.
