- Facebook on Monday announced the acquisition of Kustomer, a customer relationship management startup.
- By bringing Kustomer into the fold, Facebook will provide small businesses that use its service to advertise and sell goods more features to close sales through the social network's services.
The deal was valued at a little more than $1 billion, according to a person familiar with the matter.
CRM tools help clients manage their communications with customers via phone, email, text or direct messages in specific apps, such as WhatsApp or Messenger.
The acquisition of a business-software company such as Kustomer is unusual for Facebook. In the past, Facebook has primarily bought consumer-centric companies, such as gif catalog company Giphy in May and Spanish cloud video gaming company PlayGiga in December 2019. These acquisitions usually serve as the foundation for building features for Facebook users.
By bringing Kustomer into the fold, Facebook will be providing small businesses that use its service to advertise and sell goods more features to close sales through the social network's services. This should seemingly lead these businesses to spend more on Facebook advertisements. That's key for the company, which makes nearly 99% of its revenue from advertising.