Meredith Corporation buys stake in The HyperfactoryMeredith Corporation, a media and marketing services company, has acquired a strategic stake in mobile marketing firm The Hyperfactory. The investment, whose terms were not disclosed, will be accounted for on Meredith's financial statements for fiscal 2010.
For Meredith, the stake in Hyperfactory extends the services and capabilities of the company's business-to-business unit Meredith Integrated Marketing. In addition, it extends Meredith's consumer brand efforts in the mobile space. “This is an important acquisition in our growth path to round out what we offer from a marketing services standpoint,” said Matt Petersen, SVP of Meredith integrated marketing. “It gives us another strategic layer so that we can fully plan and execute multichannel marketing programs for our clients.”
The Hyperfactory, which employs more than 100 employees in offices in Auckland, Australia Los Angeles, New York, Chicago, Hong Kong, Sydney and Hyderabad, India, will continue to operate as an independent company. They will be expanding resources in their New York and Los Angeles offices, said Petersen.
The Hyperfactory's clients, which include Coca-Cola, BlackBerry, L'Oreal, Vodafone, Disney and Kraft, will remain Hyperfactory clients. Meredith could potentially try to grow these relationships across the Meredith Integrated Marketing unit.
“We think mobile is going to be more and more integrated into overall CRM programs in the future for our clients,” said Petersen.
This partnership comes in a long line of acquisitions. Since 2006, Meredith Integrated Marketing has added a number of agencies to the group including interactive marketing services firms O'Grady Meyers and Genex, viral marketing firm New Media Strategies, as well as healthcare marketing communications firm Big Communications and database strategy and analytics experts Directive.
Petersen would not when or whom, but he did say that more acquisitions could be in Meredith's future. “The marketing landscape is changing very quickly and in order to be able to serve our clients in the future, it will be necessary for us to have the right competencies in place, and we are always looking for that next channel,” he said.