In a deal worth $200 million according to some reports, Klout will join Lithium to become "one of the biggest data footprints of consumer attitudes, preferences, and activities on digital channels," Lithium says.
Social customer service company Lithium Technologies has acquired online social influence start-up Klout.
Lithium did not disclose the terms or any financial details. However, ClickZ previously covered reports that the deal could be worth $100 million or more and, on March 27, Fortune reported the deal was worth $200 million.
Catapult Advisors served as financial advisor to Lithium on the transaction.
According to a press release, Klout will maintain its consumer offering while Lithium will deliver an expanded product portfolio "built around advocacy, loyalty, and enhanced profiles."
The combined companies reach more than 500 million consumers across 10,000 interest areas and more than 300 branded communities, Lithium says.
"The combination of Lithium and Klout establishes one of the biggest data footprints of consumer attitudes, preferences, and activities on digital channels," the brand adds.
Likening its new platform to LinkedIn, Yelp, or eBay, Lithium says it now "brings together both trusted people and trusted content" and "has created an exchange of shared value and a more complete measure of reputation."
This allows brands to build a better profile of their customers and engage consumers more effectively, Lithium says. It also means consumers can discover which brands to trust and receive rewards for their loyalty.
"Lithium and Klout both have deep expertise and capabilities in driving engagement - combined, our ability to put trust back at the center of the relationship between consumers and brands is unmatched," writes Lithium president and chief executive (CEO) Rob Tarkoff in a blog post.
"The conversation between consumers and brands should be just that: a conversation, not a shout by brands at consumers. That's the promise the new Lithium will deliver on," Tarkoff adds.
As a result of the deal, Klout CEO Joe Fernandez will join Lithium's executive team, reporting to Tarkoff, and will continue to run the Klout operation as its general manager and as a senior vice president at Lithium.
In addition, Chi-Hua Chien from Kleiner Perkins Caufield & Byers will join the Lithium board of directors.
Revolutionize your digital marketing campaigns at ClickZ Live San Francisco (August 10-12)!
Educating marketers for over 15 years, our action-packed, educationally-focused agenda offers 9 tracks to cover every aspect of digital marketing. Join over 500 digital marketers and expert speakers from leading brands. Register today!
In addition to ClickZ and Search Engine Watch, Lisa's work has appeared in The Huffington Post, The Luxury Spot, LearnVest, MarthaStewart.com, GoodHousekeeping.com, amNewYork, and The Wall Street Journal. She's a graduate of Columbia's School of Journalism.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.