Salesfusion today announced plans acquire LoopFuse, an Atlanta-based provider of marketing automation software and social listening and publishing tools used by hundreds of small and midsized companies and divisions of large enterprises. Financial terms of the deal were not disclosed.
Two weeks ago, Salesfusion received $8.25 million in a round of Series B funding, which helped finance the acquisition.
According to Salesfusion CEO Christian Nahas, LoopFuse will add two key technological strengths to the company. LoopFuse has social listening and publishing capabilities that will be integrated into the Salesfusion platform by the middle of the second quarter. LoopFuse also offers predictive analytics capabilities that use algorithms to figure out which people talking about a certain keyword, for example, could be potential customers. That, Nahas says, will help "filling the top of the funnel."
Salesfusion also plans to apply the predictive functionality to its users' internal CRM systems. "It will take your history of what's closed and hasn't closed and predictively lead score everything in your database, telling you what you should focus on based on past history," Nahas describes.
Instead of having a manual formula that assigns points to certain activities to come up with a static lead score, LoopFuse's technology responds dynamically, adjusting as the profiles of closed deals change.
LoopFuse's social listening and publishing and predictive analytics capabilities will complement Salesfusion's core strengths in marketing automation and Web site analytics. Salesfusion originally focused Web site visitor tracking technology that allows marketers to see how a user was engaging with their company Web sites. When the user finally submits his name and email to download a white paper, for example, marketers would be able to tell what other content he had perused prior to the download.
Together, the companies will have around 1,000 customers and 75 employees. Both companies are based in Atlanta, so the move will also help pool the talent at the respective companies. LoopFuse CEO Robert Pease and CTO Bradley Young will stay on post-acquisition to help grow the business and manage the technology.
Nahas, who has been CEO since August, said the privately held company just underwent a year of impressive growth and has a huge untapped market ahead. "When you look at the broader midmarket space, it's very underpenetrated. Some of the biggest names in marketing automation have 2,000 customers," out of a midmarket space that numbers hundreds of thousands of companies.
The acquisition had been in the works for months, according to Nahas, who said he and Pease both share the vision "that marketing automation was powerful but failing marketers because it was difficult to use. It automated mundane tasks of marketing, but didn't make them smarter, just more efficient.
"Marketing automation could be a lot better if the solution could learn the behaviors of the marketers and prospects, giving them smart data about how to engage," he adds.