Google parent company Alphabet has reportedly abandoned its efforts to acquire customer relationship management (CRM) company HubSpot.

Although Alphabet had already expressed interest in a possible deal with HubSpot earlier this year, the talks did not progress beyond the due diligence phase, Bloomberg reported on Wednesday (July 10), citing unnamed sources.

Neither Alphabet nor HubSpot immediately responded to PYMNTS' request for comment.

According to the report, HubSpot shares fell as much as 19% on Wednesday, the biggest drop since 2020.

A deal between the two companies would have been one of the largest deals for a technology company this year, the report said. After Wednesday's share price drop, HubSpot had a market value of around $25 billion.

At the same time, according to the report, such a deal would likely have required a lengthy review by US antitrust authorities.

Reuters reported on April 4 that Alphabet was considering making a takeover offer for HubSpot. The company had met with investment bankers to discuss how much to offer and whether it would face challenges from regulators.

Alphabet has not commented on this report, while HubSpot told Reuters it has “no comment on rumors or speculation.”

The report said at the time that an acquisition of HubSpot would expand Google's offerings in the CRM market, create new opportunities for the company's cloud computing business and open up new areas of growth – all at a time when Alphabet's advertising business is facing stronger competition.

Bloomberg reported on May 9 that Google remains in talks with HubSpot about acquiring the company and that the companies have discussed potential terms of a deal.

At the same time, the report said that discussions were still ongoing and there was no certainty that the two companies would reach an agreement.

In April, HubSpot partnered with Stripe to streamline digital payments for small and medium-sized businesses (SMBs).

“SMBs on the HubSpot platform manage their sales and customer data in CRM and use Sales Hub to manage their business,” said Shilpa Dhar, senior vice president and general manager of commerce at HubSpot, in an interview with PYMNTS published in April. “Now, when SMBs start using Commerce Hub for payment and billing solutions, all of their data about all customers and transactions is in one place.”

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