Facebook to acquire Kustomer in $1 billion deal

The social media platform is incorporating more ways for businesses to communicate with their customers.

| More on:
Woman sitting and looking at her phone smiling watching the share price go up

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Facebook Inc (NASDAQ: FB) announced in a blog post on Monday that it would acquire privately held start-up Kustomer. The company provides a customer-relationship management (CRM) platform that helps businesses manage customer communications across a variety of channels.  

The price of the deal wasn't disclosed but was reportedly worth just over $1 billion, according to a report in The Wall Street Journal, citing "people familiar with the matter." 

One of the consequences of the pandemic has been an acceleration in the digital transformation. Facebook noted this shift, pointing out that "texts and messages have become just as important as that phone call -- and businesses need to adapt." More than 175 million people contact businesses via its WhatsApp social media platform, and the number is growing, according to Facebook.

After releasing several tools recently to allow customers to communicate with businesses more easily via Messenger and WhatsApp, Facebook was ready to take the next step, bringing Kustomer onboard. The CRM platform is an omnichannel tool that gathers customer communications from a variety of channels and brings them together in a single screen. It also automates repetitive tasks, allowing customer-service personnel to "maximize the time and quality of interactions with customers."

Kustomer allows businesses to aggregate and respond to customer communications, and was previously integrated with Messenger. Facebook began incorporating similar capabilities into Instagram just last month.

Kustomer's founders, Brad Birnbaum and Jeremy Suriel, spent a previous stint at Salesforce.com Inc (NYSE: CRM) and have a history of successful start-ups. The pair sold their cloud-based customer app Assistly to Salesforce in 2011 for $80 million.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Danny Vena owns shares of Facebook. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook and Salesforce.com. The Motley Fool Australia has recommended Facebook. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

a man with a wide, eager smile on his face holds up three fingers.
International Stock News

3 reasons to buy Nvidia stock before 29 July

Jensen Huang and Mark Zuckerberg will speak together at an AI conference. Could that move the needle for Nvidia?

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
International Stock News

Has Nvidia's stock finally peaked?

Could this be the start of a much larger sell-off in Nvidia's stock?

Read more »

Rede arrow on a stock market chart going down.
International Stock News

Why Nvidia stock is sinking again

Earnings season has kicked off for the "Magnificent Seven." What does this mean for Nvidia?

Read more »

Man pumping petrol
International Stock News

Tesla's Q2 disappoints, but there's more to the story

Here's why the second quarter could be better than it appears, and why 2025 can't come soon enough.

Read more »

A man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phone
International Stock News

Why Tesla stock just crashed

Tesla stock looks like the "Bad News Bears" of the auto industry.

Read more »

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
International Stock News

What did Nasdaq high flyers Tesla and Alphabet just report?

Nasdaq earnings season continues with Google-parent Alphabet and Tesla reporting overnight.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
International Stock News

Nvidia stock has pulled back over 10%. Here's what history says could happen next

Nvidia has a 100% success rate of rebounding after pullbacks of 10% or more. Will this time be different?

Read more »

Digital rocket on a laptop.
International Stock News

Why Nvidia stock jumped on Monday

Nvidia investors got some big news, and the stock is also getting a boost thanks to bullish Wall Street analysts.

Read more »