SAN DIEGO–(BUSINESS WIRE)–digital powera leading performance-based digital marketing services company that uses data, analytics and proprietary technology to drive digital commerce, today announced a strategic capital investment of Court Square Capital Partners, a middle-market focused private equity firm with $7.5 billion in assets under management. The investment comes after three years of unprecedented growth at Power Digital, which has increased its workforce by more than 400 employees and experienced revenue growth of more than 400% during this period.
“This partnership brings Power Digital one step closer to achieving our day one mission to become the world’s most loved and respected private performance marketing platform,” said Grayson Lafrenz, CEO and Founder of Power Digital. “The Power Digital team is excited to work with Court Square because of their extensive experience and deep industry knowledge, which will help drive the data-driven approach that encompasses everything we do. We are excited to partner with them in the next phase of our growth trajectory. »
Power Digital managed nearly $600 million in advertising spend in 2021 and achieved 110% net revenue retention with a 64% net organic growth rate. Additionally, Power Digital has an employee retention rate of over 91%, offered over 150 promotions last year, and has a 68% female workforce. Court Square’s investment will in part support Power Digital’s proprietary machine learning technology platform, SPRnova™ (“nova”), as well as funding strategic acquisitions that share Power Digital’s core values and priority granted to an exceptional quality of service.
“We have been deeply impressed with the growth of Power Digital since its inception in 2012 and are excited to partner with Grayson and the Power Digital team for the next phase of business growth. This investment demonstrates our 40-year track record of successfully partnering with founders, families and owner-managers to help drive significant value creation,” said Kevin White, Partner at Court Square. “Power Digital has all the hallmarks of a ‘Court Square Investment’ and we are confident in its ability to become the market leader in performance marketing.”
In 2019, Power Digital received an investment of Periscope Equitywhich propelled the company on its current growth trajectory.
“Power Digital’s exponential growth is the result of the leadership team’s flawless execution of the company’s three-year strategic plan,” said John Findlay, Partner at Periscope Equity. “Our partnership with Power Digital has been an absolute thrill and we are more than confident that the company is well positioned to continue its growth trajectory with the team at Court Square.
Power Digital will continue to operate from its headquarters in San Diego, Calif., with current CEO Lafrenz taking on an additional role as chairman. The terms of the contract are not disclosed. The acquisition is subject to regulatory approvals and customary closing conditions. Power Digital was advised by investment bank Canaccord Genuity.
About Power Digital:
Power Digital is a leading data-driven performance marketing company, nationally recognized for its ability to combine the best of art and science. As a technology-focused, full-service company, the company offers best-in-class services that deliver best-in-class full-funnel marketing. Power Digital is focused on helping brands increase revenue and increase profits by using their first-party data and Power Digital’s proprietary data warehouse to drive strategy, creating compelling value for customers. Unique to Power Digital, its proprietary SPRnova™ machine learning platform can analyze growth opportunities for any business with a corresponding roadmap on how to execute and track progress across every marketing channel. Leveraging its team of the nation’s top strategists, creatives, and data scientists, Power Digital delivers scalable, actionable marketing solutions for every stage of the funnel and for every stage of the consumer journey. For more information, please visit www.powerdigital.com.
About Court Square Capital Partners:
Court Square is a middle-market private equity firm with one of the most experienced investment teams in the industry. Since 1979, Court Square has made more than 240 platform investments, helping executives, families and founding owners build their businesses into leaders in their respective markets. Court Square invests in companies that have compelling growth potential in the business services, industrials, healthcare, technology and telecommunications sectors. Court Square has $7.5 billion in assets under management and is based in New York, NY For more information about Court Square, please visit www.courtsquare.com.