Digital consultancy West Monroe has acquired Carbon Five, a product management, digital design and software engineering firm that opened one of its national offices in Chattanooga seven years ago.
With the purchase, West Monroe will operate a dozen offices across the country with more than 2,000 workers, including the 10 employees at the Chattanooga office on downtown Williams Street that the new owners say they hope to expand with more workers. .
The acquisition is part of West Monroe’s strategy to expand its end-to-end digital services and comes less than three months after the Chicago-based company also acquired Verys, a 200-person product development company.
Founded in 2002, West Monroe is one of the fastest growing digital consulting firms in the United States and is expected to generate more than $500 million in revenue this year working with companies in the healthcare, insurance, utilities, retail, food production and other sectors.
Last month, investment firm spun off from the family office of billionaire Michael Dell, MSD Partners, acquired a 50% stake in West Monroe, with the other half of the company owned by its employees. The deal valued the Chicago-based company at around $2.5 billion, according to Bloomberg News.
Tom Bolger, Chief Strategy Officer at West Monroe, said Carbon Five “is a like-minded organization with strong talent and integrated product capabilities.
“When combined with the scale of Verys and West Monroe’s core expertise in strategy, industry and technology, we are able to drive lasting value and partnership for our clients” , did he declare.
Carbon Five, which started in 2000, has offices in Los Angeles, San Francisco, New York and Chattanooga.
Alex Cruikshank, managing director and technical lead for Carbon Five in Chattanooga, said the company decided to open an office in Chattanooga in 2014 because of the city’s high-speed Gig internet connections and growing tech startup culture.
“The startup community that’s here and the kind of talent that gave us access to hiring, in addition to the great community here to work in, that’s what drew us to Chattanooga,” Cruikshank said.
Although the Chattanooga office is the only Carbon Five location in the Southeast, Cruikshank said staff work primarily on national accounts, including a lot of recent work with the healthcare, fintech and corporate sectors. cryptocurrency.
“We are excited about Carbon Five because they are truly world-class in their product development,” said Greg Layok, chief technology officer for West Monroe in Chicago. “We’re growing our product engineering and product development capabilities, and we’ve been very impressed with the breadth of Carbon Five’s capabilities. We want to find the best talent wherever we can find it, and it turns out that “There is a great talent pool in Chattanooga, and we look forward to continuing to grow in Chattanooga, which is working very well to diversify where we are and in its time zone serving so much of the country.”
Carbon Five co-founders Mike Wynholds and Don Thompson will continue to run Carbon Five as a West Monroe-owned company until the integration, which is expected to be completed in 2022.
As part of West Monroe, Carbon Five will collaborate across the company in multidisciplinary teams comprised of technologists, industry experts, business strategists, product engineers and others to deliver a comprehensive set of solutions to customers.
Although West Monroe is currently focused on the US market, MSD’s recent investment will allow the company to fund its international expansion.
“We are currently focused on the United States, but will be opening an office in London in the first quarter of next year,” Kevin McCarty, the company’s chairman and chief executive, told Bloomberg.
Contact Dave Flessner at [email protected] or 423-757-6340.