Less than one week after eBay Enterprise Marketing Solutions broke free from its former parent company, eBay, it announced the acquisition Friday of the performance digital agency Digital Net Agency under its new owners Banneker Partners and the Permira Funds.
While terms of the acquisition were not disclosed, eBay Enterprise Marketing CEO Michael Jones told Search Marketing Daily the deal brings in about 30 talented individuals led by Aaron Baker, Digital Net Agency (DNA) CEO. The boutique agency -- focused on search engine marketing and advertising, including affiliate management.
eBay Enterprise Marketing's business -- had about 500 employees. More than 60% of DNA’s clients are affiliated with eBay Enterprise Marketing Solutions either in affiliate management, SEO or Paid Search.
Baker, who steps into the role of COO, helped eBay Enterprise Marketing CEO Michael Jones build out the affiliate company Pepperjam from 2005 through 2008.
Jones says acquiring Digital Net Agency helps to strengthen the fundamentals of the business and performance marketing, and will help Enterprise Marketing Solutions compete against companies like Commission Junction, iProspect, and 360i. "Some of the other upcoming mergers and acquisitions will be a little more challenging, but this one will be straightforward," he says, referring to some of the tech–based companies on his M&A radar.
"We want to be a company that can eat its own cooking, yet limit the risks for clients," Jones said during a discussion earlier in the week.
It appears that the ability to limit risks for clients could have eBay Enterprise Marketing Solutions release a new pricing or reporting structure that will "turn the economic model on its head" and allow retailers the opportunity to work in what he calls "a true performance model." It won't happen until 2016, and will include improvements in analytics and reporting technology.
The acquisition of Digital Net Agency also brings strategic brands into eBay Enterprise Marketing's portfolio of companies such as those focused in cosmetics. It manages about 80% of its business on eBay Enterprise Marketing's technology.