Selling Source adds to data, tech capabilities
Selling Source LLC, a technology and data company that serves the financial services industry, has acquired the marketing personnel and technology of CompuCredit Corp.
With the acquisition, Selling Source is launching a new Financial Products Group (FPG), which will provide technology and data services for credit card companies and other businesses in the financial industry.
“Historically, Selling Source serviced the microloan sector, but we are currently seeking to diversify our marketing technology and data efforts into a wider range of verticals,” explained Derek LaFavor, CEO of Selling Source. “CompuCredit has credit card-related products so it represents a great opportunity to not only secure CompuCredit long-term as a large customer but also to acquire the marketing data and technological expertise of its marketing group. We can then further penetrate into other credit card companies, so it was a kick-start into a vertical with both the talent and the customer.”
CompuCredit, which markets and services branded credit cards, has signed a long-term agreement with Selling Source, under which FPG will perform certain marketing duties.
“It's a nice, natural fit between two organizations,” said John Hashman, formerly part of the CompuCredit management team and now the EVP of Selling Source FPG. “CompuCredit is a leading subprime credit card issuer that has built up a tremendous expertise in marketing through direct mail and Internet and alternate channels, but primarily it is on the risk management side, not marketing. This allows CompuCredit to enter into a contractual relationship with Selling Source whereby they can utilize their marketing and allow Selling Source to further diversify in the credit card space.”
LaFavor added that the new group marked a first step in Selling Source's new push to diversify into additional vertical markets. The company is moving “aggressively” into club and reward products, installment loans and the marketing of consumer electronics.
FPG is expected to have marketing and data revenue in excess of $20 million in 2009, according to LaFavor.