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GroSocial is acquired by Infusionsoft

Infusionsoft will use GroSocial to expand into social media marketing

Financial trends and news by Steven Loeb
January 22, 2013 | Comments
Short URL: http://vator.tv/n/2d0d

Social marketing company GroSocial has been acquired by small business software company Infusionsoft, it was announced Tuesday. Terms of the deal were not disclosed. 

With the addition of GroSocial, Infusionsoft will be able to provide small businesses with the ability to convert the leads they generate through social platforms into customers. GroSocial will be integrated with Infusionsoft's CRM, marketing automation and e-commerce tools, in order for Infusionsoft's small business clients to meet the growing demand for a social media marketing software tool that helps them generate qualified leads.

The entire 19-person team at GroSocial will be joining Infusionsoft, putting the number of company employees at 370. GroSocial will continue to operate as a dedicated product team in Utah. Company co-founder Zach Mangum will continue to lead the Utah operation and will oversee, with fellow co-founder Kevin Kirkland, the social product strategy for GroSocial.

"Social media marketing isn't just for big brands. We see a huge opportunity to change the way small businesses get results from social media platforms. Our tools make it easy for small businesses to have a big-business presence on social media and to actually generate leads and convert sales from their social media marketing efforts. We're excited to catapult our innovation for small businesses with Infusionsoft even further," Mangum said in a statement.

Orem, Utah-based GroSocial was founded in 2012 by Mangum Kirkland and Chris Wright. It is a creator of social media marketing software for small and medium-sized businesses.

The company’s core product is called Customizer. It is a drag-and-drop app builder for business Facebook Pages that is designed to helps businesses affordably increase their social media presence and influence through targeted branding, community creation, social contests and promotions, and public relations.

In October 2011, GroSocial raised $450K in a round of seed funding led by Kickstart Seed Fund, with help from Monarch Ventures, Rock & Hammer Ventures, and angel investors. In May 2012, the company raised $1 million from all existing investors, as well as HubSpot Co-founder and CTO Dharmesh Shah and HubSpot CMO Mike Volpe. 

GroSocial currently has more than 30,000 users. 

Chandler, Arizona-based Infusionsoft builds custom software for small businesses, in order to help them manage their entire sales and marketing lifecycle. It uses a Web-based system that combines intelligent automation with powerful CRM, email marketing, e-commerce and social media tools, including an Infusionsoft widget in the GroSocial app that allows users to capture leads and trigger automatic follow-up. The company counts over 12,000 small businesses as clients.

Founded in 2004, Infusionsoft announced $54 million in growth capital financing earlier this month, led by Goldman Sachs. The company is also funded by Mohr Davidow Ventures, Signal Peak Ventures and  vSpring Capital.

This is Infusionsoft's second acquisition. In November 2011, Infusionsoft announced the acquisition of CustomerHub, an online membership site and customer portal tool.

"GroSocial is helping small businesses get real results from their social media marketing efforts. The company has proven its commitment to customer success with an amazing product that drives social media leads for tens of thousands of growing small businesses. Their team is talented and passionate, and the company is a clear winner and the ideal choice for us in the social media marketing space," Infusionsoft co-founder and CEO Clate Mask said in a statement . "An Infusionsoft and GroSocial combination will lead to innovation and powerful results for small businesses."

Infusionsoft and GroSocial could not be reached for comment. 


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