Marketing services provider Harte-Hanks Inc. HHS recently acquired privately-owned 3Q Digital Inc., a leading digital marketing agency, for an undisclosed amount. The transaction is expected to be accretive to Harte-Hanks’ earnings in 2015.
With offices in San Mateo, San Francisco, Chicago, San Diego and Burlington, 3Q Digital is one of the biggest independent digital marketing agencies in the San Francisco Bay Area. The company offers digital media services, primarily in the paid-search category through SEM, SEO, Analytics and Social, Display, Mobile and Video advertising. The digital marketing agency focuses on 3Q’s best-in-class customer service (EQ), dynamic and evolving strategies (IQ), and repeatable, proprietary methodology (XQ).
The acquisition will complement Harte-Hanks’ existing service portfolio with enhanced connectivity for in-depth interactions and superior marketing performance. On the other hand, the transaction would enable 3Q Digital to better serve its existing customers by leveraging Harte-Hanks’ operating platform and skilled marketing expertise.
Post-acquisition, more than 120 digital marketers of 3Q Digital will join Harte-Hanks. The acquisition is therefore a win-win deal for both the companies.
Harte-Hanks, while aiming to achieve sustainable, consistent long-term revenue growth, is at the same time intent on improving its operational efficiency via cost-reduction initiatives. It is also re-aligning its portfolio in order to keep up with the dynamic demand scenario.
The company is focused on achieving revenues of $1 billion in five years, through both organic growth strategies and acquisitions. It is planning to invest around $200 million for acquisitions contemplated in the next 2–3 years.
Harte-Hanks presently carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the industry include Corporate Executive Board Co CEB, Exponent Inc. EXPO and Huron Consulting Group Inc. HURN, each carrying a Zacks Rank #2 (Buy).
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