Magnet 360 Acquires Cloud Consultancy Reside
Minneapolis-based Magnet 360 on Wednesday announced that it has acquired Reside, LLC, a Web services provider and cloud-computing consultancy.
Financial terms of the acquisition were not disclosed.
Magnet 360, founded three years ago, began as a network of marketing, branding, design, and technology companies that followed a “general contractor” model, Managing Partner and cofounder Scott Litman told Twin Cities Business on Wednesday. The member agencies collaborated on projects to provide a variety of services to clients.
The company's business model has since evolved, and Litman says its in-house staff is now focused on providing a more narrow set of core services that it sells most, including customer relationship management (CRM) services, social and mobile application development and analytics, marketing automation, and channel marketing.
Litman describes “the new Magnet 360” as a “social enterprise agency” and says that its expertise in marketing and technology will help large business clients communicate both internally and with customers through the use of social media platforms.
Litman, who joined Reside's board of directors three years ago, described the acquisition as a natural step for the two companies, which have collaborated and provided services for mutual customers in the past.
Magnet 360 integrated Reside's operations and work force earlier this year, boosting its employee count from 17 to about 60, Litman said. The merged company operates under the Magnet 360 name and has an office in New York, in addition to its Minneapolis headquarters. Reside's CEO, Matt Meents, has been named a managing partner at Magnet 360; he shares that title with Litman and Magnet 360's other cofounder, Dan Mallin.
Magnet 360, which generated about $7 million in sales last year, expects the acquisition to boost its 2012 revenue to $20 million, Litman said. The company's client list includes General Mills, Ecolab, Medtronic, 3M, Honeywell, Toro, AMC Theaters, and Carnival Cruise Lines.
Litman and Mallin also run the Minnesota Cup, an annual competition for entrepreneurs with innovative business ideas.