Keystone Capital has acquired MERGE, a marketing and technology services agency, from Baird Capital which acquired the company in November 2012.
MERGE’s capabilities include business and digital strategy, brand development, creative advertising, digital marketing execution, digital design and content creation, data analytics, custom technology development and media services. The company is active in a number of market sectors but has specific expertise in healthcare. MERGE has more than 270 employees across offices in Chicago (headquarters), Boston, and Atlanta (www.mergeworld.com).
With the transaction closed, Ron Bess has been named as executive chairman of MERGE and he will remain as CEO of the company. Joining MERGE also as CEO is Patrick Venetucci, a 30-year industry veteran with previous executive roles at Leo Burnett Worldwide and Dentsu Aegis.
“We are thrilled to begin our partnership with Keystone Capital,” said Messrs. Bess and Venetucci in a combined statement. “We see tremendous opportunity to build on the strong foundation developed over the past two years. Keystone’s unique approach to patiently investing their personal capital alongside management with a focus on long-term value creation is the perfect fit for our employees and our clients. In addition, Keystone’s deep understanding of marketing and technology-enabled services will provide us with an experienced strategic partner to help achieve our goals for organic growth and complementary acquisitions.”
Keystone Capital invests in middle market companies with EBITDAs of $2 million to $15 million. Sectors of interest include professional services and consulting, business services, industrial technology and manufacturing, food and beverage, and consumer products. The firm was founded in 1994 and is based in Chicago (www.keystonecapital.com).
“Keystone is excited to partner with the talented team at MERGE to continue building on their success serving clients at the intersection of marketing and technology,” said Bill Sommerschield, a principal at Keystone Capital. “We and management see a substantial opportunity to further enhance MERGE’s differentiated capabilities, end-market expertise, and client-centric service approach through internal growth and talent development initiatives as well as targeted acquisitions.”
Baird Capital, the seller of MERGE, makes venture capital, growth equity and private equity investments in the healthcare, industrial products and services, and technology services sectors. The firm is based in Chicago with additional offices in Milwaukee, London and Shanghai (www.bairdcapital.com).
New York-based investment bank JEGI (www.jegi.com) was the financial advisor to MERGE on this transaction.
Senior debt financing was provided by Wintrust Bank (www.wintrustbank.com).
© 2018 Private Equity Professional | December 17, 2018
