Another Agency Bites the Dust

Well, not really. It was an acquisition.

Long-time (relatively speaking) online marketing agency (and one of our more known competitors) Spunlogic has been acquired by a Columbus, Ohio conglomerate, Engauge. Engauge was actually started less than a year ago. The company was founded and financed with the sole intention of growth by acquisition -- plans to grow by acquiring agencies in fields like data analytics, behavioral targeting and direct marketing, then rolling them into a single agency.

Engauge is starting with two acquisitions, each estimated to cost $15 million to $40 million: Direct Impact in Austin, Tex., with 100 employees and about $15 million in revenue, and Ten United, with 200 employees and about $25 million in revenue.

The financial terms of this agreement went unstated, but considering the most recent report that Spunlogic is about 60 people (as of a 2007 reporting) and their valuation of past businesses of 150k - 200k per employee, the valuation of the deal was probably around $8-$12 million.

Spunlogic will be renamed Engauge Digital. The CEO of Spunlogic will now serve as President of Engauge Digital. No news if they are moving offices from Atlanta, but we assume not.