Socialtext adds a social layer to Peoplefluent products and gets funding to market itself more aggressively.
6 Social Sites Sitting On The Cutting Edge
(click image for larger view and for slideshow)
The technology investment fund Bedford Funding is buying Socialtext and making the social collaboration software company part of the Peoplefluent family of products, which revolve around recruiting, training, and the category known as Human Capital Management.
Socialtext CEO Eugene Lee said his company will continue to compete in the enterprise social networking market as an independent subsidiary, but it will also provide a social software layer to make other products in the Peoplefluent suite work better together.
Although Bedford Funding announced the transaction as a "strategic investment," Lee confirmed the firm has in fact bought Socialtext outright. "They are now our only investor. In addition, they are providing a considerable amount of cash as working capital set aside for operational growth."
Instead, Socialtext as an independent company was positioning itself as an easy-to-implement solution for small to midsize businesses.
That might start to change, because one of the things Peoplefluent brings to this marriage is a base of more than 5,000 enterprise customers, Lee said.
As an independent company, Socialtext had been following a slow, steady path and was profitable on an operating basis, Lee said. Now, now it will be able to get more aggressive, he said. "We're all gassed up and ready to go."
The Enterprise 2.0 Conference brings together industry thought leaders to explore the latest innovations in enterprise social software, analytics, and big data tools and technologies. Learn how your business can harness these tools to improve internal business processes and create operational efficiencies. It happens in Boston, June 18-21. Register today!
We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.