Tech Dealmaker Awards

Libert

“We Are Smarter Than Me” is the concept of Mzinga Inc.’s social media solutions — that accumulated wisdom is greater than individual wisdom. Mzinga offers that capability with enterprise social media solutions, domain expertise and moderation services. Mzinga sought to grow its customer base through “organic and inorganic growth,” explained chairman Barry Libert.

In March 2008, Mzinga landed $32.5 million in financing to acquire Prospero Technologies, a developer of customer community solutions. Prospero brought rich social media technology and a client base in media, entertainment and publishing.

The financing was led by W Capital Partners, a private equity firm, along with investors Bluecrest Capital Finance LP, GE Capital, Knowledge Industries, and Mzinga’s management team. The financing was split with $15 million in equity, the remainder in working capital and acquisition financing.

Since the acquisition and financing, “we’ve had wonderful growth, even in this financial crisis,” says Libert. “And we’ve seen real economies of scale in this transaction.” This is a particularly poignant year for the combined intelligence of Mzinga and Prospero, says Libert, in that “we’re seeing companies use social technologies for marketing, HR and customer support campaigns, just as (President-elect Barack) Obama used social media” in his campaign strategies.

The combined workforce of 215 employees is based in Burlington. Mzinga’s A-list customer base now includes Chevron, Johnson & Johnson, AOL, ABC and CBS.

— Dann Anthony Maurno

Category

Strategic Investment

The Deal

Mzinga Inc. secured $32.5 million in a new round of financing led by W Capital Partners, along with Bluecrest Capital Finance LP, GE Capital, Knowledge Industries, and members of the Mzinga management team, announced March 3, 2008

Key Executives

Mzinga chairman Barry Libert and CEO Rick Faulk

Deal advisers

Chairman Barry Libert

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  TM Capital
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• Silver Sponsors: Capital IQ
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  Preston Productions
  Trinity Communications

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