Yesterday Bazaarvoice, Inc., a social software provider, announced that it has entered an agreement to acquire PowerReviews for up to $31 million in cash and will issue up to approximately 6.4 million share of common stock. The entire deal is expected to be worth more than $150 million.
Founded in 2006, PowerReviews provides a social platform that includes ratings and reviews, Q&A, loyalty, discover and measurement capabilities. To date, the company has acquired more than 1,100 retail customers including Gap, REI, Staples and Toys ‘R’ Us.
The acquisition will expand the Bazaarvoice network to cover more than 1,800 global clients, including close to 50% of the Internet Retailer 500 companies.
"Because online word of mouth content is so critical to consumers' purchasing decisions, brands place tremendous value on the consumer reach we provide through the Bazaarvoice network, and the acquisition of PowerReviews will significantly extend this reach," said Stephen Collins, chief financial officer and chief innovation officer of Bazaarvoice, in a press statement.