Spredfast and Lithium Technologies to Merge

Rod Favaron, Chairman and CEO of Spredfast, courtesy photo.

Austin-based Spredfast announced that it is merging with San Francisco-based Lithium Technologies.

The financial terms of the deal were not disclosed.

After the merger, the company will be based in San Francisco with Austin as its largest office. Pete Hess of Lithium will serve as CEO. Rod Favaron, Spreadfast’s CEO, “will work closely with the management team to help ensure a smooth and successful transition,” according to a news release.

The merger creates one of the largest customer engagement platforms online.

“We couldn’t be more excited about joining forces with the dynamic team at Spredfast,” Hess, CEO of Lithium, said in a news release. “Brands focus on improving the trust they earn with their customers. Their success depends on world-class digital engagement, and the merger of Lithium and Spredfast will provide them with the best platform to earn that trust and help grow their business.”

Together, the companies have more than 2,000 brands as customers in 100 countires. Lithium and Spreadfast manage millions of consumer engagements every day across social media, messaging and owned digital channels.

“This is a great day for Spredfast. We can’t wait to come together with the Lithium team to create the industry’s most innovative and robust suite on the market,” Favaron, Chairman, and CEO of Spredfast said in a news release. “No other company will offer the unparalleled industry and technology expertise to reimagine how businesses think about customer engagement.”

The combined companies provide a single platform for company’s to manage and interact across all of their brands and various social media channels. The platform provides the company with data analytics on its customers.

“We are thrilled to welcome Spredfast to our portfolio of high-performing software companies,” Alan Cline, Principal at Vista Equity Partners, said in a news release. “We see an incredible opportunity to unify consumer engagement in the highly fractured marketing and care industries, bringing together the power of two best-of-breed offerings into a game-changing platform for growth.”

The merger is subject to closing conditions.

Spredfast, founded in 2008, acquired Austin-based Mass Relevance in 2014 and a year later it acquired Shoutlet. In 2016, Spredfast raised $50 million. To date, the company has raised $116 million. The company had 500 employees in 2016 with 300 based in Austin.

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