The U.S. Department of Justice’s Antitrust Division closed its investigation on Aug. 19 into the proposed merger of Seismic Software Inc. and Highspot Inc., Associate Attorney General Stanley E. Woodward Jr. said. The Division’s decision followed a three-month review of whether the transaction could harm competition for sales enablement software platforms.
Seismic and Highspot announced on Feb. 12 that they had signed a definitive agreement to merge. Both companies offer sales enablement software platforms to businesses. The Antitrust Division opened an investigation and issued Second Requests to the merging companies, requiring the production of additional information.
“After a targeted review of key competitive questions, the Antitrust Division made the decision to close its investigation, reducing the Second Request compliance burden on the merging companies,” Woodward said. He described the resolution as an example of an expedited review focused on key dispositive issues.
The Division and the companies entered into a timing agreement that prioritized evidence concerning AI entry and repositioning. Deputy Assistant Attorney General G. Charles Beller said the Division evaluates claims that AI supports consolidation among close competitors by examining the facts of each case, including ordinary-course documents and data from the merging companies and third parties.
During the review, the Division examined documents, analyzed data and interviewed industry participants. It considered whether the merger could harm competition in a market where Seismic, Highspot and other legacy providers had competed without meaningful entry from larger, more diversified technology companies in adjacent markets. The Division also assessed whether newer AI-native firms could enter the market in a timely, likely and sufficient manner to reduce the risk of competitive harm.
The Justice Department said multiple types of evidence indicated that AI-native firms were growing quickly to win sales enablement software platform customers and were increasing competitive pressure on legacy providers. Based on the particular facts surrounding the proposed merger, the Division decided to close its investigation.