HubSpot To Buy Content Company The Hustle: What You Need to Know

Shares of HubSpot Inc HUBS were trading higher Thursday after the customer relationship management software provider announced a M&A transaction.

What Happened: HubSpot said late Wednesday it has agreed to acquire The Hustle, which produces a newsletter, podcast and premium research content.

The deal is valued at about $27 million, Axios reported, citing a source familiar with the matter.

The Deal Logic: The proposed acquisition is likely to give HubSpot more ways to offer its community of scaling companies valuable content across a host of topics, including educational, business, and tech trends, and a more diverse set of media.

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"For many customers, their first introduction to HubSpot is through our educational blog, Academy, and YouTube content, not our software. More recently, our customers have started to seek out news and trends-based content across new forms of media like podcasts, newsletters, and research," Kieran Flanagan, senior vice president of marketing at HubSpot, said in a statement. 

"By acquiring The Hustle, we'll be able to better meet the needs of these scaling companies by delivering content in their preferred formats."

The Hustle's daily email, started in 2016, has more than 1.5 million readers. Its subscription platform Trends and the "My First Million" podcast give entrepreneurs insights, data and best practices to help scale their companies, according to the company. 

"Most ad-first media companies are dying. And I don't want to join a sinking, clickbait ship. I always thought a b2b SAAS biz should buy us. But never thought they'd be bold enough to try," Sam Parr, founder of The Hustle, said in a Twitter thread, explaining the logic of selling to HubSpot.

HUBS Price Action: At last check, HubSpot shares were rising 1.98% to $403.79. 

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Photo courtesy of HubSpot.