Tech consulting group Gartner has agreed to acquire digital performance benchmarking firm L2, for an undisclosed sum.
NYC-based L2 helps clients optimize their digital marketing budgets, with an offer based around an annual subscription. It employs around 150 associates, and also has an office in London. Three years ago it raised $16.5m in a round of venture capital, for use in expanding its international reach and accelerating development of its 'Digital IQ Index' tool. Scott Galloway is Chairman & Founder while current CEO Ken Allard (pictured) - a veteran of Huge, Lux Research and Jupiter Media Metrix - replaced former Millward Brown leader and current Macromill Chief Exec Scott Ernst in 2015. Co-founder and Chief Strategy Officer Maureen Mullen completes the top team.
In an email thanking subscribers the team described the sale as 'a rewarding moment for us' but stressed that the deal includes incentives for L2 management to remain with the firm for several years. Gartner is currently digesting a much larger acquisition, that of CEB, announced in January, and while it does so L2 will operate as an independent unit of the group, with no 'changes in the format, delivery or personnel' dealing with L2 members. The team concludes: 'Over time we will determine how both firms can leverage each other's resources to develop new offerings'.
Gartner says the buy is 'highly complementary to its existing digital marketing research and advisory services' and should further accelerate its already impressive long-term growth.
Gartner intends to fund the acquisition using cash on hand and borrowing capacity under existing arrangements, and says the requirement was factored into calculations at the time of the CEB acquisition. The transaction is expected to close by the end of this month, subject to customary closing conditions.
Web site: www.l2inc.com .
All articles 2006-18 written and edited by Mel Crowther and/or Nick Thomas.