In the wake of its earnings report, Snap Inc confirmed that it had paid $213 million for Zenly – the app that lets user map their social networks – and $135 million for Placed, which provides location attribution and measurement features for marketers.
The figures were revealed as part of a SEC filing on Friday.
In addition, Snap Inc shared that the Placed deal included an equity plan for its employees with 550,038 shares worth approximately $6.6 million in stocks.
Acquisitions appear to be vital to Snap Inc.’s business strategy as the company disclosed that it had acquired “a component of a business from a social advertising software company” back in June 2017 for $62 million.
Together, that brings Snap’s total acquisitions to $400 million. And the company may not be done yet given that it finished Q1 with a balance sheet of $3.2 billion closing the second quarter at $2.8 billion in cash.
Undoubtedly, the firm hopes that the latest additions can help boost its advertising business which did not meet expectations during a recent earnings call.
Not all acquisitions will be merged into Snap. Instead, Placed will continue to operate as a separate entity from its Seattle offices.