Mzinga Acquires Prospero, Solidifying Market Leadership in Business Social Media
Acquisition Underscores “Pervasive Community” Strategy for Workplace and Customer Communities
Burlington, MA — March 3, 2008 — Mzinga (www.mzinga.com), the leader in workplace community solutions, today announced it has acquired Littleton, MA-based Prospero Technologies (www.prospero.com), the leader in customer community solutions. Prospero has a strong client base in the media, entertainment, and publishing sectors, and owns online community properties Talk City and Delphi Forums.
With this acquisition, Mzinga now offers the broadest suite of workplace and customer community solutions that allow businesses to increase revenue, lower costs, accelerate product innovation, and engender customer loyalty. The two companies bring together an unparalleled combination of highly scalable business social media technology, in-depth moderation services, and deep domain expertise focused on improving business processes for marketing, human resources, and customer service professionals.
“Business leaders are quickly realizing they need to integrate the voice of their customers and employees to ensure their success in today’s highly connected world,” said Mzinga Chairman Barry Libert, co-author of the book We Are Smarter Than Me. “The most successful companies are weaving the concept of ‘pervasive community’ into the fabric of their organizations to improve standard business processes, including employee development, product innovation, and customer satisfaction.”
Mzinga Differentiation: Expertise, Scale, and Results
“There are plenty of tools providers and white label offerings in the social media marketplace today,” said Rick Faulk, CEO of Mzinga. “What sets us apart is our ability to apply our accumulated expertise to helping customers solve specific business problems – not just in the deployment of the technology, but also in design, goal-setting, management, and ongoing moderation.”
The acquisition establishes Mzinga as the clear leader in business social media over an array of niche providers, as evidenced by several key business metrics.
More than $30 million in revenue
1 billion page requests per month
27 million users in 160 countries worldwide
350K new users each month
Mzinga’s customers include globally recognized brand leaders, such as ABC, AOL, ESPN, CBS.com, iVillage, Chevron Corporation, Johnson & Johnson, Marsh, Inc., Mercer, Prudential Financial, Deutsche Post World Net, United Nations Development Programme, Depository Trust & Clearing Corporation, and many others.
“We have seen explosive growth as our customers have realized the value of our social media solutions,” said Dan Bruns, co-founder of Prospero, and now Mzinga’s EVP of Social Media. “This transaction provides us with greater organizational focus and a critical mass of resources to address the rapidly expanding market for our services.”
Flexible SaaS Technology & Deployment Options
Mzinga’s software-as-a-service technology platform provides the broadest suite of social media applications, flexible integration options, and enterprise-grade moderation capabilities to ensure efficient, secure control of user-generated content.
The platform allows tremendous flexibility in the way social media technology is deployed to meet the needs of a variety of customers. Using “widget” technology, one or more social media elements may be seamlessly embedded into a customer’s web site, while template functionality can be used to create private-label community destination sites. Customers also have the option of crafting their own look and feel, and integrating social media features via API into their web pages or other applications.
This social media technology will be rapidly integrated into Mzinga’s industry-leading learning platform. The resulting “learning 2.0” functionality is a core element of Mzinga’s broad-based workplace offering. It addresses the demand of Mzinga’s existing enterprise customers seeking to improve their recruiting, onboarding, and learning activities.
Social Media Empowers the Workplace
"New workforce demographics demand that corporations integrate social networking solutions into their employee development environment," said Josh Bersin, CEO of Bersin & Associates, a premier research and advisory services firm focused on enterprise learning and talent management.
"With its experience in both corporate learning and business-driven social media, Mzinga is in a unique position to fill this need for the corporate buyer. The Prospero acquisition greatly improves Mzinga's position by providing well architected, proven social media technology which can rapidly be integrated into existing talent management solutions."
The acquisition was facilitated by the New York investment banking firm of North Haven Partners, Inc.
Mzinga is the leading provider of business social media solutions to drive growth, innovation, and learning. Its combination of highly scalable technology, rich domain expertise, and moderation services enables businesses to harness the collective intelligence of employees, customers, and partners to achieve tangible business results. Marketing, customer service, and human resources professionals deploy Mzinga’s “pervasive community” solutions to achieve higher revenues, lower costs, and greater workplace satisfaction.
Mzinga, whose name means “beehive” in Swahili, is headquartered in Burlington, Massachusetts, and is generating more than $30M in revenue with 150 employees. With 14,000 communities under management, Mzinga services more than 1 billion monthly page requests from 27 million users in 160 countries worldwide.
Mzinga’s marquee list of customers includes such global brands as ABC, AOL, ESPN, CBS.com, iVillage, Chevron Corporation, Johnson & Johnson, Marsh, Inc., Mercer, Prudential Financial, Deutsche Post World Net, United Nations Development Programme, and Depository Trust & Clearing Corporation. For additional information, visit http://www.mzinga.com/pr/