Sprout Social, the Nasdaq-listed social media marketing company, is buying Irish-founded media intelligence company NewsWhip in a deal potentially worth $65 million (€56.63 million).
In a statement, the Chicago-headquartered company said the transaction will see NewsWhip join Sprout Social’s so-called Listening platform, which helps clients analyse social media trends and build campaigns.
Paul Quigley, chief executive and co-founder of NewsWhip, will step into a general manager role, overseeing Sprout Listening and NewsWhip.
The Irish company, which tracks real-time engagement on mainstream media and other sources such as Reddit, TikTok, YouTube and Substack, unveiled the world’s first artificial intelligence (AI) media monitoring agent earlier this month.
RM Block
The deal involves a $55 million cash payment and up to $10 million in “performance-based cash earn-outs” over the next two years.
Sprout Social said on Wednesday that NewsWhip is a “pioneer in AI-powered, predictive media intelligence”. It said the acquisition would expand Sprout’s footprint in the “predictive intelligence market and create an innovative solution that empowers brands and publishers to navigate the digital media landscape with incredible foresight and agility”.
“NewsWhip’s AI-driven insights give brands a predictive edge that’s critical in today’s fast-moving digital world,” said Ryan Barretto, chief executive of Sprout Social. “Their technology unlocks real-time, actionable intelligence that allows businesses to stay in advance of trends and risks.
“This acquisition accelerates our vision of delivering an argentic, AI-powered platform that seamlessly connects media foresight with social strategy to drive transformative outcomes for our customers.”
Founded by Mr Quigley and Andrew Mullaney in 2011, NewsWhip uses predictive data and analytics to identify breaking news stories and for crisis monitoring purposes. It began as a consumer app for trending news before targeting its offering to help clients better manage their corporate reputations.
The company works with some of the world’s leading publishers, brands and agencies as customers, including big names such as Google, Cigna, Walmart, Deloitte and Nissan, and publishers such as Axios, Reuters, BBC and AP.
The company has raised more than $20 million (€17 million) in funding to date, backed by investors such as Associated Press, Tribal VC and Asahi Shimbun.
“We founded NewsWhip to harness real-time intelligence to redefine how brands and publishers anticipate and act on media trends,” said Mr Quigley.
“Sprout Social’s market-leading platform, proven go-to-market strategy and commitment to innovation make them the ideal partner to build on this vision. Together, we’re poised to deliver incredible value to our customers and establish a leading position in the rapidly growing predictive intelligence market.”
