MeritDirect eyes expansion with private equity deal

merit2US data group MeritDirect is targeting further expansion in both its domestic and international markets, including what it calls “strategic acquisitions”, after securing a major cash injection from Denver-based private equity firm Mountaingate Capital.
Founded in 2000 with its HQ in New York, MeritDirect specialises in technology powered B2B database products and services, designed to help clients “execute data-driven omnichannel marketing and customer acquisition strategies”. The company is also a major advocate of account-based marketing (ABM).
The business first expanded out of the States in 2013 with the launch of an international division operated from London and spearheaded by former Mardev-dm2 chief Karie Burt. Global clients include major brands SAP, Microsoft, Wells Fargo and Lands’ End as well as agencies such as Gyro and Mediasmith.
The terms of the deal have not been disclosed but Mountaingate has already invested over $395m (£313m) in a raft of companies, including healthcare analytics firm W2O, billing company ImagineSoftware and CRM specialist Bold Orange.
The private equity firm targets investments in new platform companies, typically with up to $25m (£20m) of earnings before interest, taxes, and amortisation (EBITA).
MeritDirect chief executive Rob Sanchez has been at the business since launch and took over from the founders Mark Joyce and Ralph Drybrough in September 2012.
He said: “Mountaingate brings a unique market perspective, stemming from their extensive data and digital marketing services investment experience that will be invaluable as we look to prioritise strategic investments to accelerate our growth and allow us to better serve our clients.”
Mountaingate managing director Bruce Rogers added: “MeritDirect is extremely well positioned in the B2B database products and services market as enterprises increasingly seek out partners to help them source, analyse and activate the data required for effective omnichannel marketing strategies. We are delighted that Rob Sanchez and the management team chose Mountaingate as their partner.”

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