Elite SEM has announced the acquisition of San Diego-based CPC Strategy, known for its expertise in Amazon, as well as retail and e-commerce.
The acquisition represents Elite SEM's third acquisition since partnering with private equity firm Mountaingate Capital in February 2017. The CPC Strategy investment will allow Elite SEM to more deeply support brands running ads across Amazon.
CPC Strategy brings to the combined company a team of 125 employees, including the founding members, who provide services such as media planning and placement, creative and content services, and data and analytics. About 45 specialists focus on Amazon marketing and advertising.
Clients at CPC Strategy include Pfizer, Reef, Guthy Renker, The Honest Company, Hallmark, Nestle, Comvita, Riddell, Unilever's Seventh Generation, and Nutrisystem, as well as many Amazon-only sellers. The combined company will have more than 500 employees this year.
“We took a look at hundreds of companies in this space that support advertising at Amazon,” said Zach Morrison, president, Elite SEM, told Search Marketing Daily. “CPC Strategy was the perfect fit, from their relationship with Amazon to the technology they built.”
Morrison estimates the company will close out 2018 with $86 million in combined revenue, rising to more than $100 million in 2019.
For now, the CPC Strategy brand will reside under the Elite SEM umbrella. Nii Ahene, co-founder and chief operating officer at CPC Strategy, will remain with the combined company to oversee the integration. “Integration will take at least one year,” he said. “As we map together the teams, I’ll shift toward innovation and strategy.”
The acquisition includes CPC Strategy's proprietary Amazon media and bid optimization platform, CAPx.