Salesforce, a New York-listed software provider, has agreed to buy advertising agency WPP-backed Buddy Media, a US-based social enterprise software.
The deal is valued at $689m compared to the about $85m raised by Buddy since its launch in 2007, slightly less than the $800 price tag quoted by news provider All Things D that broke the story of the deal.
The deal is broken down as $467m in cash, $184m in stock and $38m invested Salesforce options and restricted stock units, accordin gto news provider PEHub.
Buddy raised $54m in series D funding last August. This round was backed by Insight Venture Partners Bay Partners, GGV Capital and Institutional Venture Partners (IVP), all of which were existing investors.
WPP Digital, a division of the global communications company WPP, backed Buddy Media with $5m in October 2010. The investment was in addition to the initial series C round, led by IVP and including VC firms Bay Partners, Softbank Capital and Greycroft Partners, which raised $23 in October 2010.
Prior to that, Buddy Media’s Softbank-led series B round closed at $6.5m in April 2008, while its September 2007 series A round raised $1.7m from a range of angel investors. Buddy Media provides a platform for brands to attract customers through building an effective social network presence.
In March this year, Buddy Media acquired Brighter Option, a year after raising a $54m fourth round of funding.
The deal is the second buy by Buddy Media in a year, after it acquired social commerce and analytics leader Spinback last May.
[Editor’s note: this article was updated on 4 June after Salesforce confirmed the takeover.]