New Delhi: Marketing company Lithium Technologies has acquired social-media measurement business Klout that gives users insights about their social media performance.
The deal, reportedly, would marry Lithium's social-media focused customer-service business with Klout's analysis of brands' and individuals' social-media savvy.
According to a report from Fortune, the deal is worth $200 million and is a mix of cash and shares of Lithium, which like Klout is privately held.
It is unclear how big a return that would represent for Klout backers, who invested at least $40 million in the company, including a $30 million round in 2012. Backers include Kleiner Perkins Caufield & Byers, which led that 2012 round; Institutional Venture Partners; Mayfield; and Microsoft Corp.
"As Klout takes the next step toward helping our users, I believe that Lithium is the ideal partner. Lithium powers many of the most vibrant communities online for leading brands like Spotify, Skype and Sephora. Together, we can do more to help you share your passions, measure your impact and grow your reputation," said Joe Fernandez, CEO and co-founder, Klout, in a post.
Lithium, founded in 2001, has raised more than $150 million from investors such as Shasta Ventures, Emergence Capital Partners, Benchmark, DAG Ventures and New Enterprise Associates. It is considered a candidate for a 2014 initial public offering.
Klout was born out of founder Joe Fernandez's inability to speak after jaw surgery, a period when he relied on sites like Facebook and Twitter to communicate. It has not gained as much traction as fans predicted a couple of years ago, despite heavy press over incidents such as assigning President Barack Obama a lower influence score than singer Justin Bieber.
Both Klout and Lithium are based in San Francisco.
(With inputs from Reuters)
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