MeritDirect’s New Years Resolution: Acquire and Expand

MeritDirect didn’t waste any time expanding its business this year. The integrated marketing solutions provider rang in the New Year announcing its acquisition of list service organization LDSGroup Inc., which MeritDirect CEO Rob Sanchez says is just the tip of the iceberg in a series of upcoming acquisitions.

“This is a strategy that we’re embarking on to expand the business,” Sanchez says. “We’ve got several other deals that we’re going to announce in the next couple of weeks, and we feel like the timing now is pretty good.…We’re going to be very aggressive in 2013 in growing our business.”

According to Sanchez, MeritDirect’s culture is founded on strong products and talent. Consequently, the acquisitions will enhance the company’s specialty areas and bulk up divisions with a lesser presence. Similarly, MeritDirect’s 2009 acquisition of Mail Marketing and 2010 acquisition of Venture Direct reinforced the company’s consumer presence in list management, he says.

“With the [LDSGroup] acquisition, we’re getting strong expansion into the consumer-customer acquisition market and business, we’re getting some presence in fundraising customer acquisition, and we’re also getting great, experienced people that can grow the business, as well,” says Sanchez, who declined to disclose the acquisition price.

MeritDirect is bringing on a number of LDSGroup executives, including naming LDSGroup’s co-CEOs Jeff Kobil and Richard Vergara as vice presidents. He claims that no layoffs will ensue.

Although LDSGroup will not keep its brand name, the majority of the company’s clients have committed to the acquisition, says Sanchez. “[When] you’re a seven [to] eight person company, it gets more and more difficult to provide a full level of service without doing a lot of partnering, whether it be for database or analytic services,” he says. “[LDSGroup] saw it being a good strategic fit with our culture…and then it being a fit as far as we have products and services that could help enhance their client relationships.”

“We were looking for an opportunity to expand our product line and help our clients grow their business in terms of prospecting, direct mail, and reactivation,” Kobil adds. “On the B2B side they’re very strong in terms of database, modeling, digital, and online, and we complement them now with our consumer marketing experience. I think it’s going to be great for everybody.”

Sanchez says MeritDirect will announce additional acquisitions as soon as tomorrow or Monday.

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