The Street: Reputation.com Acquires MySocialCloud
Online reputation management and digital privacy company Reputation.com continued its buying spree on Wednesday, July 24, with the acquisition of MySocialCloud, a move that will help develop its cloud-based privacy capabilities.
Financial details of the deal weren’t revealed by Redwood City, Calif.-based Reputation.com, but the company’s CEO and founder, Michael Fertik, said in a phone interview that it was a cash-and-stock transaction and was handled internally.
MySocialCloud’s one-stop password platform lets users manage all their logins in one place, known as the “Cloud It,” and aligns with the development of Reputation.com’s consumer data vault, the acquirer said in a July 24 statement.
“People are going to want one place to go to protect their data,” Fertik said. “We want to be the user-centric, pro-privacy company — protect, power and monitor your data for you. Right now, everybody controls everything but you.”
Fertik said he was introduced to MySocialCloud founders — 22-year old Scott Ferreira and his 20-year old sister, Stacey, as well Shiv Prakash — around the beginning of the year. A deal followed quickly.
Los Angeles-based MySocialCloud, founded in 2011, has received backing from several investors, including Virgin Group’s founder and chairman Sir Richard Branson, Insight Venture Partners’ co-founder Jerry Murdock and Photobucket founder Alex Welch.
The acquisition represents the online reputation management company’s third purchase this year.
Less than a month ago, on June 27, Reputation.com bought the PaperKarma mobile app, which filters user mail. Terms of the transaction were not released.
On Feb. 4, Reputation.com entered the European marketplace with the acquisition of U.K.-based online reputation management firm Reputation 24/7, now called Reputation.com (U.K.), for an undisclosed price.
“International is becoming more important to us,” Fertik said, explaining that 30% the company’s organic growth is occurring overseas. “It’s a high priority.”
The more than six-year-old company, which was formerly known as ReputationDefender® Inc., is seeking additional strategic acquisitions and has already identified potential targets, Fertik said, declining to elaborate.
Reputation.com’s latest financing round took place on Aug. 2, 2011, upon which it raised $41 million led by Menlo Park, Calif.-based August Capital. Reputation.com, which Fertik said has raised approximately $67 million since its inception, is also backed by JAFCO Ventures, Bessemer Venture Partners, Kleiner Perkins Caufield & Byers and Floodgate Fund.
Among the company’s clients are Wells Fargo, BBVA Compass Bank, AOL, First National Bank of Omaha, the American Medical Association, and the American Bar Association.
Goodwin Proctor serves as the company’s corporate counsel, Fertik said.
Several other players — Brand.com, ReputationRepair.com, Radian6 Technologies Inc. and Demandforce, to name a few — also compete in the rapidly changing online reputation management space.
On June 27, Brand.com was acquired by ReputationChanger.com, which adopted the former’s name in a six-figure deal. Privately held Demandforce on April 27 was acquired by accounting software company Intuit Inc. for $423.5 million in cash. Saleforce.com bought Canada’s Radian6 for $340 million on March 30, 2011.
— Written by Sarah Pringle in New York
Original article: http://bit.ly/13n64We