Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of social media management software, today announced the acquisition of Tagger Media, Inc. (“Tagger”) a leading influencer marketing and social intelligence platform. This acquisition will further establish Sprout as the leader in the social media software market with a comprehensive platform that empowers brands to execute a holistic social strategy at scale.
“As influencer marketing has changed the way brands build awareness and connection, our customers are increasingly demanding to break the workflow silos between core social media strategies,” said Justyn Howard, Sprout Social’s CEO and Co-Founder. “By bringing Tagger’s influencer marketing software into Sprout’s suite of solutions, we have the opportunity to deliver the next generation of social insights to our customers to fuel business strategy and measure the full ROI of holistic social investments. Tagger and Sprout have a shared mission for building powerful and intuitive software and we’re excited to bring our industry-leading products and teams together.”
Tagger Media was founded in 2015 to make influencer marketing more effective and accessible for all brands. Today, Tagger’s unified SaaS solution enables the world’s largest brands and agencies to discover influencers, plan and manage campaigns, analyze competitor strategies, report on trends and measure ROI—delivering tangible business impact. Tagger has twice been recognized as the Best Influencer Marketing Platform by the Global Influencer Marketing Awards and was recently recognized by G2 as the Summer 2023 Leader, Summer 2023 Momentum Leader and Summer 2023 High Performer in the Enterprise.
“We started Tagger because we saw extraordinary potential in the creator economy and knew there was an opportunity to build disruptive and innovative software for brands,” said Pete Kennedy, Tagger’s Founder and President. “We’re delighted to execute together on a shared vision to define this rapidly emerging market.”
“We believe Sprout’s incredible brand recognition, well-refined go-to-market strategy and industry-leading software will enable us to further accelerate the opportunities for our employees and the value we deliver to our customers,” said Dave Dickman, Tagger’s CEO. “We’re motivated to establish ourselves as the category winner in influencer marketing.”
Financial Details
Sprout Social has acquired Tagger Media for cash consideration of $140 million in a transaction that closed on August 2, 2023. The acquisition was funded with a combination of cash from Sprout Social’s balance sheet and Sprout’s newly established revolving credit facility.
“We are excited to broaden our market footprint into influencer marketing with the addition of an exceptional product and an exceptional team,” said Joe Del Preto, CFO. “We expect Tagger will accelerate our ARR and ACV growth rates, and will deliver upside to our gross and operating margin expansion goals beginning in 2024. We see a strong opportunity to further accelerate Tagger’s growth and drive high adoption of influencer marketing software in our customer base. As we align our product roadmaps and platform strategy, Tagger represents a new and differentiated growth opportunity to complement the beginning of our next great growth chapter towards our target of $1 billion in subscription revenue.”
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