Bazaarvoice has entered into a definitive agreement to acquire privately-held PowerReviews in a deal worth an estimated $151.9 million, Bazaarvoice announced this afternoon.
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Bazaarvoice will pay $31.0 million in cash, issue up to 6.4 million shares of common stock and assume vested and unvested options to purchase the common stock of PowerReviews equivalent to 1.6 million options to purchase the common stock of Bazaarvoice.
The transaction will be financed with cash on hand and is expected to close during the first fiscal quarter ending July 31, subject to customary closing conditions.
Founded in 2006, PowerReviews provides a social platform that includes ratings and reviews, Q&A, loyalty, discovery, and measurement capabilities. PowerReviews has built a client base of more than 1,100 retailers, primarily small and mid-size North American retailers, as well as large retail companies, such as Gap, REI, Staples and Toys ‘R’ Us.
The acquisition expands the Bazaarvoice network to over 1,800 clients globally. The expanded client base will create new opportunities to syndicate authentic online word of mouth content across an expanded global network and enhance the ability of both brands and retailers to connect directly with their customers to generate new insights into consumer sentiment.
BazaarVoice did not indicate if PowerReviews would be folded into Bazaarvoice banner, or would continue to run as a standalone company.