Troika Media Group to Acquire Media Marketing Company for $125 Million
Troika Media Group, Inc. (NASDAQ: TRKA) (“Troika”), a global brand solutions company, has announced its plans to acquire media marketing provider Converge Direct, LLC (“Converge”) for $125 million. The acquisition is set to close before March 15, 2022, and was unanimously approved by the Boards of Directors and shareholders of both companies.
Converge uses a combination of digital and traditional marketing, data intelligence, and SEO to target and acquire new clients. Its current clientele includes prominent brands such as AT&T, Wayfair and Petco. The company provides a competitive advantage with its proprietary platform, “HELIX”, a business intelligence software that helps clients increase visibility.
Along with increasing Troika’s presence in the Large and Growing Digital Media and Performance Marketing Sector, the acquisition provides a large revenue and earnings growth opportunity, with Converge having brought in $300 million in revenue last year.
“The acquisition of Converge will place us in the growth sweet spot of digital content, data and digital media which is moving from brand awareness and trial to conversion at significant scale,” said Troika CEO Robert Machinist. “With strong top-line growth, solid margins, and a significant shareowner interest in the combined entities, we believe this transaction deepens and broadens our digital client offerings. Accordingly, we expect that it will substantially enhance shareholder value.”
Converge Founder and CEO Tom Marianacci said “[Converge’s] focus on performance-based marketing, proven data and technology solutions, and scale will allow us to leverage the deep customer base and brand building experience that Troika has established over decades to offer expanded offerings that drive new revenue opportunities for the combined companies.”
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