M&A Alert—May 23, 2012
Oracle Acquires Vitrue
Transaction Size: $300mm
Vitrue provides cloud-based social marketing and commerce management software that enables businesses to effectively manage their presence on social networks. Vitrue offers the following key products:
- Vitrue Publisher enables companies to manage, moderate and engage in two-way conversations with fans and followers on multiple social networks such as Facebook, Google+ and Twitter from one centralized location. Companies use Vitrue Publisher to schedule content on social networks, direct fans’ questions to appropriate members and analyze/measure social engagements.
- Vitrue Tabs helps marketers create mobile-enabled custom-branded Facebook fan pages and offer customizable social apps and modules including Pinterest and Instagram.
- Vitrue Shop allows brands to build customizable social commerce applications within Facebook. Vitrue Shop enables brands to drive peer-to-peer conversations and make social recommendations and sales within the Facebook network.
- Vitrue Analytics enables marketers the tools to analyze and measure audience social engagement and the effectiveness of their social marketing campaigns.
Vitrue has managed over 1.3 billion social interactions for more than 500 major brands including McDonald’s, AMEX, Lowe’s, Diesel, Gamestop, Corona, P&G, KIA, ClearChannel, Ikea and BBC. Some of the better known independent competitors include Buddy Media, Wildfire and HootSuite, with many others also vying for attention. Upon close of the acquisition, Vitrue will be integrated to Oracle Cloud offerings. Founded in 2006, Vitrue is based in Atlanta and has raised $33mm in funding from Advent Venture Partners (Frederic Court), Comcast Ventures (Louis Toth, Samir Gupte), Dace Ventures (David Andonian), General Catalyst Partners (David Fialkow, George Bell, Neil Sequeira), Gold Hill Capital Management, Scale Venture Partners (Stacey Bishop) and Turner Broadcasting System.
Oracle’s legacy is its market-leading database management systems. Over the last decade, Oracle has built and acquired a broad range of enterprise software products including tools for application development, enterprise resource planning (ERP), customer relationship management (CRM) and supply chain management software. Since the beginning of 2010, Oracle has acquired 19 companies.
Enterprise Value: $300mm
Comparable transactions specifically focused within the social media marketing management sector include Exact Target’s acquisition of CoTweet, Adobe’s $400mmacquisition of Efficient Frontier and Saleforce’s $340mm acquisition of Radian6. The best social commerce M&A comparable is Walmart’s $400mm acquisition of Kosmix. Marketing automation has generally been a very active area of consolidation which include IBM’s acquisitions of DemandTec, Unica and Coremetrics; Adobe’s acquisitions of Omniture and Demdex; SAP’s investment in Lithium; Intuit’s acquisition ofDemandforce; Teradata’s acquisition of Aprimo and finally Oracle’s acquisition of ATG.
Oracle has watched a number of its competitors making acquisitions to bolster marketing automation product capabilities. Vitrue provides Oracle with an industry-leading social media marketing and commerce product offerings.
Architect Partners’ Observations
Marketing organizations within large enterprises are in the midst of transformation. As nicely summarized by Ajay Agarwal in his recent GigaOM contribution, marketing departments are increasingly implementing software to facilitate and automate marketing processes as well as using increasingly sophisticated data analytics to more effectively deliver results.