Merkle acquires 5th Finger

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Merkle acquires 5th Finger
Merkle acquires 5th Finger

In a move to strengthen its mobile commerce capacities, CRM agency Merkle has acquired 5th Finger, a technology-enabled mobile solutions provider, says EVP and CMO of Merkle Craig Dempster. 

5th Finger will retain its brand, though it will adopt a new logo and will now be referred to as “a Merkle company,” says Dempster, stating that the acquisition was finalized on July 5 and resulted in no layoffs in either company—serving primarily as an expansion.  

“As a CRM company, our strategy is about optimizing customer touchpoints, and mobile is obviously becoming a critical touchpoint,” says Dempster, adding that prior to acquiring 5th Finger, Merkle had a team consisting of about 10 people working on mobile strategy—focusing primarily on SMS messaging, Dempster says. "5th Finger brings Merkle [the] creative services and commerce capabilities Merkle needed," says Dempster, noting in particular 5th Finger's portfolio around mobile app solutions. 

With the acquisition of 5th Finger, Merkle now has 40 individuals focused on mobile commerce stategizing, Dempster says. “Now that we have combined our mobile groups, we expect revenue in 2012 to exceed 10 million,” Dempster says.

5th Finger was chosen by Merkle, Dempster says, because they were recognized as a leader among mobile agencies. “Both Merkle and 5th Finger are strong cultural companies with an entrepreneurial spirit,” Dempster says. Moreover, both enterprises have bases in retail and healthcare industries, he says. Dempster speculates that this shared strength was a motivation for 5th Finger to sell to Merkle, who also works with a variety of other sectors and thus enables 5th Finger to grow its services, Dempster says. 

Dempster declines to disclose financial details of the acquisition.

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