Priority Software, one of Israel's veteran business software companies, announced it is acquiring Fireberry, an Israeli company that develops a customer relationship management (CRM) system with AI capabilities. According to Calcalist, the deal reflects a valuation above NIS 100 million. Priority will initially buy more than 50% of Fireberry's shares and receive an option to buy the rest from founder Amir Segev.
Why does it make sense? Priority develops ERP software that runs a business's operations: inventory, purchasing, accounting, manufacturing and finance. Fireberry develops customer management software: sales, service, marketing and inquiry tracking. In a typical business the two systems do not always talk to each other, with customer information in one place and financial information in another. Connecting them should give a business a single picture, from a customer's first inquiry to the invoice.
According to the announcement, Fireberry will continue to be sold as a standalone product and will also be built into Priority's cloud platform. Fireberry's customers include car dealerships, real estate agencies, nonprofits, educational institutions and retail chains. The deal continues a string of acquisitions by Priority since investment firm Blackstone took control in 2024.
For the market, the deal reflects a broad trend: business software vendors are trying to offer customers 'everything in one place' and layer AI on top of all of a business's data. The more centralized the data, the easier it is for AI tools to answer questions like 'which customers may leave' or 'what stock should we order'. For the Israeli small and mid-sized businesses using both systems, the practical question will be how fast, and at what price, the integration arrives.
