Digital design firm Carbon Five, which has an office in Chattanooga, acquired by West Monroe

0


Digital consulting firm West Monroe acquired Carbon Five, a product management, digital design and software engineering firm that opened one of its country 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 will grow 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 over $ 500 million in revenue this year working with companies in the healthcare, insurance, utilities, retail, food production and other industries.

Last month, billionaire Michael Dell’s family office investment firm 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 new.

Tom Bolger, chief strategy officer at West Monroe, said Carbon Five “is a like-minded organization with strong talent and integrated product capabilities.

“When paired with Verys’ scale and West Monroe’s core expertise in strategy, industry and technology, we are able to generate lasting value and partnership for our customers.” , did he declare.

Carbon Five, which began in 2000, has offices in Los Angeles, San Francisco, New York and Chattanooga.

Alex Cruikshank, managing director and technical manager of Carbon Five in Chattanooga, said the company decided to open an office in Chattanooga in 2014 due to the city’s gig high-speed internet connections and its growing culture as a tech startup.

“The startup community that is here and the kind of talent that gave us access to hire, besides the good community here to work in, is what drew us to Chattanooga,” said Cruikshank.

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 healthcare industries. cryptocurrency.

“We are excited about Carbon Five because they are truly world class in the development of their products,” said Greg Layok, managing partner of technology for West Monroe in Chicago. “We are expanding our product engineering and product development capabilities, and we have been very impressed with the depth of capabilities of Carbon Five. 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 works great to diversify where we are and in its time zone serving 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 a member of West Monroe, Carbon Five will collaborate within the company on multidisciplinary teams comprised of technologists, industry experts, business strategists, product engineers and others to deliver a comprehensive package. 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, chief executive officer of the company, told Bloomberg.

Contact Dave Flessner at [email protected] or 423-757-6340.


Share.

Comments are closed.