Epsilon Data management Inc, a subsidiary of financial and marketing services firm Alliance Data Systems Corp, is buying New York-based Bigfoot Interactive Inc, a privately held provider of email marketing automation solutions, for around $120m.
Alliance provides credit card transaction and marketing services while Bigfoot provides technologies and professional services aimed at improving personalized email marketing communications.
Bigfoot is the biggest permission-based email marketing company in the US, handling over 165 customer brands. The company has a strong presence in the financial and retails sector, counting JP Morgan Chase & Co and Capital, Target and Amazon as clients.
The company’s annual revenues run at around $30m. All 85 Bigfoot employees are expected to be bought on board with Al DiGuido, Bigfoot’s CEO heading up the new Epsilon Interactive division. Other senior Bigfoot executives are also being given prominent roles at Epsilon.
Epsilon now gains a stronger foothold in the financial services and retail sectors as well as a capability to integrate large-scale, targeted email communications with other channels like contact centers and direct mail services. We’re on the road to building a multi-channel marketing services giant in the marketplace, DiGuido said in a statement.
Epsilon says the acquisition will close in the autumn and is expected to be neutral to its fiscal 2006 earnings.