What is better than the strength of one company? The answer is the strength of two companies coming together in the joining of forces. In this case, Spredfast and Shoutlet, two leading social media management software companies are becoming one. The Austin-based Spredfast said today that they are acquiring Shoutlet, their competitor from Madison, Wisconsin.
Once the deal is complete, there will will be over 1,400 clients under their belt. In that long list of clients, some of the big names include all five major broadcast television networks and half of Interbrand’s top 100 global brands. That’s a nice chunk of clientele power they will have.
Nat Elliot, an analyst with Forrester Research feels that this is good news, saying,
“Marketers would welcome any consolidation in a category as cluttered as this one,” Elliott said in an email to Marketing Land. “Plus, Spredfast and Shoutlet are two of the strongest players in the field. If Spredfast manages this process well, this move should only make them stronger.”
These two companies each were given high marks by Forrester’s most recent rankings of social relationship platforms. Spredfast was named a market leader, while Shoutlet was given the title of best all-round tool of the second tier of “strong performers,” along side Expion, Hootsuite and Falcon Social.
Spredfast president and CEO, Rod Favaron feels that the coming together of these two companies is a great fit since each company build their platforms to integrate well with other digital marketing tools. There is quite the list of tech partners on the Spredfast site, including:
- Crimson Hexagon
- Google Analytics
Favaron said that for Spredfast, they believe that openness is key, unlike many of their competitors, who have more closed-ended tools.
“We have much more of a collaborative, open best-of-breed culture and strategy than most companies,” he said in a telephone interview. “I think that’s very unique in this market.”
“We think 2016 and 2017 are really the years when social goes from being a standalone set of tools that a business buys to a set of enterprise products that integrate with all of their other enterprise products.”
Once the companies have fully merged, both platforms will be maintained for the time being, integrating tools from each.
The terms of the deal between the private companies weren’t announced. Shoutlet’s executive team and approximately employees in the Madison office will be absorbed into Spredfast, bolstering Spredfast’s employee roster to about 600. Aaron Everson, who is the president and co-founder of Shoutlet, will be the general manager of Shoultet.