Friday, May 18, 2007

Capital Groups Love DM Giants

A leading article in today's "DM News": Private equity groups to buy database giants Alliance Data, Acxiom

These deals alone are worth $10.8 billion. Wow.

Just another sign that our industry is changing/evolving.

Here's my take on this, 2 things--

1. Financial experts recognize the value of a solid firm that deals in information and information management. In the short term, they see the positive margins and cash-flow and in the long-term, they recognize the continued growth in the value of data and database marketing.

2. The change (and confusion/disruption that's always associated with change) within the giant firms (like Acxiom and Alliance) represents growth opportunity for smaller, more nimble firms. I foresee new clients won and new business opportunities for small and mid-sized marketing firms.

Good news for RRW and other smaller companies that have found a way to add value as they represent some of the offerings of the DM giants!

Have a wonderful weekend.

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