Publicly traded e-commerce marketing automation platform Klaviyo has agreed to acquire Agency, a three-year-old AI-powered customer success startup founded by serial entrepreneur Elias Torres.

The terms of the deal were not disclosed. Founded in 2023, Agency had raised $32 million from investors including Sequoia, Menlo Ventures, and Felicis prior to the acquisition.

As part of the deal, Torres will join Klaviyo as chief product officer, leading Agency‘s 25-person team to accelerate the development and expansion of Klaviyo‘s AI agents: Composer, which builds marketing campaigns, and Customer Agent, which handles post-sale support like returns and order tracking.

Klaviyo co-founder and CEO Andrew Bialecki said the combined offering will be brought to 200,000 businesses with the goal of reaching millions more.

For Torres, joining Klaviyo brings his career full circle. He co-founded Performable, which was acquired by HubSpot in 2011, and later Drift, where he served as CTO for eight years until its $1.

2 billion sale to Vista Equity in 2021. In 2010 at Performable, Torres hired Bialecki, who had graduated from Harvard two years earlier, as one of that startup’s first engineers.

Bialecki co-founded Klaviyo shortly after leaving Performable. When Klaviyo raised its first outside capital in 2015, Bialecki invited Torres to back the seed round as an angel investor.

Klaviyo completed its IPO in September 2023 at a $9.2 billion valuation.

Torres and Bialecki believe Klaviyo‘s years of customer data give its AI agents an advantage over competitors like Decagon and Sierra.