SmartReply, an e-mail and phone marketing company, has bought mobile ad firm mSnap, WSJ reports. The amount of the deal wasn't disclosed, but the terms call for three-year-old mSnap's shareholders, which include Partech International and First Round Capital, to get a minority stake in Irvine, Calif.-based SmartReply.
Although mSnap had raised $6 million in funding and only has 12 employees, the economic downturn has pushed the company to look for a larger company to acquire it. As the economy started to sour, mSnap, which still hasn't hit profitability, found a willing suitor in SmartReply, which had been trying to find a way to expand into mobile marketing.
By David Kaplan