Hootsuite will acquire the Belgian company Sparkcentral. Both companies specialise in the development of tools to facilitate communication via social media.
Both Hootsuite and Sparkcentral confirm the acquisition on their websites. The amount of money involved in the takeover is not shared. Sources from De Tijd suggest that it is no more than a few million.
Sparkcentral was founded in 2012 by Davy Kestens under the name Twitspark. The company created software to manage social media easily. The company grew rapidly and raised multiple investments of several million euros.
Yet the success was not permanent, partly due to increased competition and partly due to mismanagement. More and more customers and investors withdrew, and eventually, Kestens itself was shown the door. American Joe Gagnon replaced him.
Nevertheless, the company has had few successes since then. According to De Tijd, the investors have lost 99.9 percent of their investment.
Hootsuite broadly does the same as Sparkcentral: simplifying interaction with social media for businesses. The company intends to use Sparkcentral to focus more on customer service. Hootsuite itself emphasizes more on marketing and sales.