Vocus Acquires Facebook Apps Provider North Social

(Ping! Zine Web Hosting Magazine) – Vocus (NASDAQ: VOCS), a leading provider of cloud-based marketing and PR software, announced today it has acquired North Social, a software company that provides Facebook applications that enable businesses to create, manage and promote their business on Facebook.

North Social offers 19 different Facebook apps delivered in a single self-service subscription, allowing businesses of all sizes to create engaging fan pages and fan experiences. The software allows users to easily set up custom Facebook pages in order to launch social media campaigns, integrate photos and videos, incorporate feeds from sites like Twitter and Yelp, offer sweepstakes, sign up volunteers and more. These applications help businesses increase their fans and Facebook “likes” and more importantly, to engage and transform them into leads and sales.

“Social media is changing the way consumers evaluate and purchase products and Facebook is becoming an increasingly important channel for organizations to engage consumers and influence this new buying cycle,” said Rick Rudman, president and CEO of Vocus. “North Social will become an important component of our earned marketing product suite.”

North Social is the latest addition to the Vocus earned marketing suite that helps organizations reach and influence buyers across social networks, online and through the media. Earlier this month, Vocus announced it had acquired Engine140, a social media recommendation engine that makes it easy for businesses to build their brand on Twitter and other social networks. In June of 2010, Vocus launched its social media module which allows organizations to listen and engage with customers and influencers across social networks.

“It’s about more than just a compelling or a visually appealing Facebook page,” says Alex Bernstein, co-founder of North Social. “With more than 600 million users on Facebook, North Social provides organizations with an easy and innovative way to engage customers and drive measurable results on the largest social network platform in the world.”

North Social is used by over 1,300 organizations of all sizes and types, including global brands such as Coca-Cola, Sony and Hard Rock Café and smaller organizations such as Falcon Motorcycles, Hello Music and Paint The Moon Photography. North Social’s operations and staff will remain in Oakland, California.

Transaction Terms
Vocus acquired substantially all of the assets and assumed certain liabilities of North Social on February 24, 2011. Under the terms of the agreement, Vocus paid $7 million in cash at close and could pay up to an additional $18 million of contingent cash consideration over 24 months based on the achievement of certain milestones.

Financial Impact
The acquisition is expected to have no material impact to Vocus’ revenue for the first quarter of 2011. However, the acquisition is expected to reduce non-GAAP EPS by approximately $0.01 in the quarter ending March 31, 2011.

For the full year of 2011, the acquisition is expected to have no material impact to Vocus’ revenue. The company projects the acquisition to reduce non-GAAP EPS by approximately $0.04 in the year ending December 31, 2011. The acquisition is not expected to have a material impact on free cash flow for the full year 2011.

The financial impact of the acquisition on a GAAP basis cannot be estimated until the allocation of the purchase price is made following the closing of the acquisition. Vocus currently expects that the reduction of EPS in the first quarter and the full year of 2011 will be significantly greater on a GAAP basis than on a non-GAAP basis due to the amortization of acquired intangible assets, acquisition related expenses and the fair value adjustments to contingent consideration.