Just two months after buying a Los Angeles-based firm, rapidly growing Magnet 360 has turned its attention to the East Coast with yet another acquisition.
Magnet 360, a St. Louis Park-based marketing and technology consultancy, told Twin Cities Business on Tuesday that it has acquired New York-based iRGONOMIC for an undisclosed sum. In addition to bolstering the company's East Coast presence, the deal strengthens Magnet 360's capabilities pertaining to “business intelligence, mobile application development, marketing, and strategy,” the company said.
Serial entrepreneurs Scott Litman and Dan Mallin founded Magnet 360 in 2008 and have since led the company on a steady growth trajectory that has included several acquisitions. The business began as a network of marketing agencies but later shifted gears, bringing more capabilities in-house and evolving into a full-service marketing technology consultancy, offering marketing solutions that tie back to the Salesforce.com customer relationship management (CRM) platform. In the process, Magnet 360 acquired two of its partners that specialized in Salesforce, and Salesforce itself became a strategic investor in Magnet 360.
The company has since been expanding with new offices, and earlier this year, it acquired Los Angeles-based American Data Company, increasing Magnet 360’s West Coast presence. That deal pushed the company's headcount above 100.
Now, it has acquired iRGONOMIC, which Magnet 360 describes as a “full service, design-driven marketing and information technology agency that has been delivering solutions in marketing automation, business intelligence, and system integration with big data" since its 2012 inception. The deal will result in "increased headcount and market leadership," Magnet 360 said.
The company gained about a dozen employees with the latest acquisition and now employs about 120 total.
iRGONOMIC has a track record of working with ad agencies, as well as health care, pharmaceutical, and media companies—and it has collaborated with Magnet 360 on previous projects. Its clients include industry giants such as Interpublic Group and Mediacom.
Mallin, who spearheaded the latest acquisition, said in a statement that iRGONOMIC’s “depth of creative capabilities and marketing strategy are well-aligned to Magnet 360’s differentiation in the Salesforce.com ecosystem,” adding that the deal expands Magnet 360’s East Coast leadership and client services.
Magnet 360 works with large clients like 3M, Medtronic, Cargill, and General Mills, and its 2013 revenue totaled about $28 million. The company's rapid growth has not gone unnoticed: In August, Magnet 360 appeared among Inc. magazine's list of fastest-growing companies. It subsequently appeared on Forbes' annual list of “America’s Most Promising Companies.”
Litman and Mallin—who, in addition to founding Magnet 360 and other successful business ventures are also the duo behind the Minnesota Cup competition—were recently honored among Ernst & Young's 2014 Entrepreneurs of the Year.
TCB profiled each of this year's winners in its August cover story; learn more about Litman and Mallin here.