Sprout Social announces acquisition of NewsWhip

Sprout Social (SPT) announced the acquisition of NewsWhip, which it calls “a pioneer in AI-powered, predictive media intelligence.” The company added that this acquisition “will expand Sprout Social’s footprint in the predictive intelligence market and create an innovative solution that empowers brands and publishers to navigate the digital media landscape with incredible foresight and agility.” Consideration for the NewsWhip acquisition consisted of $55M of cash and up to $10M in performance-based cash earnouts applicable over the next two years. The acquisition, which closed on July 29, was funded with Sprout’s revolving credit facility and cash on its balance sheet. “We are excited to deepen Sprout’s Listening capabilities with NewsWhip’s industry-leading real-time insights and innovative AI agents, which we believe will accelerate our AI roadmap over the next several years. NewsWhip has earned the trust of globally recognized brands for critical crisis management. We will discuss NewsWhip in more detail on our second-quarter earnings call on August 6,” said Joe Del Preto, CFO of Sprout Social.