Klear Acquisition: Key Details, Impact, and What Comes Next

Meltwater's acquisition of Klear marks a significant development in the social intelligence and influencer marketing industry. By integrating Klear's advanced influencer marketing capabilities, Meltwater aims to offer a comprehensive social suite, enhancing its media intelligence and social analytics services. This strategic move positions Meltwater to better serve its global clientele with a unified platform for social listening, analytics, and influencer management.

What Is Klear?

Founded in 2015, Klear is an enterprise influencer marketing platform offering services such as social media monitoring, social media publishing, consumer insights, and social influencer management. Known for its seamless integration and user experience, Klear has partnered with major global brands like Nestlé, Walmart, and BMW. The platform's unique selling point lies in its comprehensive suite of tools and its strategic partnership with Meltwater, enhancing its global reach and market presence.

Who Acquired Klear?

Meltwater is a leader in media, social, and consumer intelligence, providing tools that transform data into actionable insights. Key services include Media Intelligence, Social Listening & Analytics, Consumer Intelligence, and Influencer Marketing. With over 20 years in the industry, Meltwater partners with global brands to enhance PR and marketing strategies. The company's robust dataset and AI capabilities make insights accessible, driving strategic decisions and improving market research efficiency, engagement, and ROI.

When Was Klear Acquired?

Meltwater acquired Klear on April 14, 2021. This acquisition aligns with Meltwater's broader growth strategy, which includes investments in the social media segment. The timing is strategic, coinciding with the rapid expansion of the influencer marketing industry, valued at $10 billion and growing at 50% per year. This move follows Meltwater's listing on Euronext Growth Oslo in December 2020 and their acquisition of Linkfluence in March 2021, highlighting their aggressive market expansion efforts.

Why Was Klear Acquired?

• Market Expansion: The acquisition of Klear is a strategic move by Meltwater to expand its market presence in the influencer marketing space. By integrating Klear's AI-driven influencer management tools, Meltwater aims to enhance its service offerings and attract a broader client base. This expansion opens up new markets worth $73 billion and $10 billion, respectively, positioning Meltwater as a leader in both market research and influencer marketing.
• Technology Integration: Klear's advanced technology, which includes algorithms and AI for identifying influencers, managing relationships, and measuring impact, will be integrated into Meltwater's platform. This integration will also include contracting and payment solutions, as well as e-commerce tools like Shopify, allowing users to manage influencer marketing spend and track revenue generation. The combined functionalities aim to create a unique market offering that integrates social listening, analytics, social management, and influencer marketing.
• Competitive Advantage: By combining Klear's industry-leading product with Meltwater's extensive customer base and resources, the acquisition creates a formidable player in the social influencer marketing space. The integrated product will be unique in the market, allowing customers to conduct, execute, and measure the effectiveness of both media relations and influencer relations in one place. This comprehensive suite of tools positions Meltwater as a more robust and versatile platform in the media intelligence and social analytics market, providing a significant competitive edge.

Acquisition Terms

• Acquisition Price: $17.8 million
• Payment Method: A combination of cash and earn-out
• Key Conditions or Agreements:
  • Meltwater agreed to purchase Klear for a price of 1.4 times Klear's 2020 revenue, settled in cash at closing.
  • The transaction was expected to close on or around April 14, 2021.
  • Klear's functionalities will be integrated into Meltwater's product suite, providing a comprehensive social suite that includes social listening, analytics, social management, and influencer marketing.
  • Klear communications will move to Meltwater channels, and starting April 1, 2024, visitors to the Klear website will be redirected to the Meltwater website.
  • The acquisition is part of Meltwater’s broader growth strategy, which includes investments and acquisitions in the social media segment.

Impact on Klear

The acquisition of Klear by Meltwater has led to significant changes in operations and management. Klear's communications have transitioned to Meltwater channels, and starting April 1, 2024, visitors to the Klear website will be redirected to Meltwater's site. Despite these changes, Klear's product will remain unchanged, and customers will continue to use the same workspace and login credentials. The leadership team at Klear will continue to drive innovation, now with the added resources of a global enterprise, ensuring a seamless transition for both employees and clients.

In terms of product offerings, the acquisition has allowed Meltwater to integrate Klear's advanced influencer marketing capabilities into its existing suite of tools. This integration provides a comprehensive platform that includes social listening, analytics, social management, and influencer marketing. Customers can now manage their influencer marketing spend and measure revenue impact all in one place. While specific employee reactions are not detailed, the overall sentiment appears positive, with a focus on maintaining strong customer relationships and ensuring continuity of service.

For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.