(Photo by Flickr user Tony Brooks, used under a Creative Commons license)
Flywheel Digital, which provides services to help consumer product companies selling on Amazon, was acquired by London-based Ascential, the companies said this month. Ascential paid $60 million in cash upfront, and the acquisition deal includes earn out payments over three years of up to $400 million.
Founded in 2014 by Patrick Miller and Chip DiPaula, Flywheel Digital has an office in South Baltimore with about 70 employees, as well as a location in Seattle.
The company offers managed services for companies to drive sales on Amazon ecommerce platforms, including, software, tools and expertise. The company’s software and processes help with online operations, merchandising, supply logistics and media management. According to the acquisition news release, it has 70 customers, serving mostly large-scale companies. The team includes account managers, search specialists, analysts and software developers.
For its part, Ascential offers a range of services to companies in areas including product design, marketing and sales. Flywheel will be part of the company’s sales area, and the team will report to Ascential CEO Duncan Painter.
“We have a clear focus on providing information and capabilities that enable our customers to succeed in the digital economy,” Painter said in a statement. “The acquisition of Flywheel is in line with this strategy, further strengthening our offerings in ecommerce for brands navigating the digital marketplaces, particularly Amazon.”
According to the news release, Ascential expects to add between $47 million and $196 million in additional earn out payments to Flywheel as part of the acquisition. The earn out is capped at $400 million, and is based on the revenue Flywheel Digital earns over the next three years. In the year that ended in December 2017, Flywheel grew its revenue by more than 150 percent, the news release states.-30-
Hanover’s Dragos looks to grow with a Houston office and an Atlanta acquisition
Allovue acquires Rockville-based edfintech startup Equiday
Columbia-based Osiris Therapeutics to be acquired in $660M deal
At 14 West, only go-getters need apply
An IPO and 10 acquisitions: Looking back at the Baltimore tech exits of 2018
Baltimore-based Neuro Motor Innovations acquired by braintech company Mindmaze
Shipbuilding giant Huntington Ingalls acquires Maryland cyber company G2, Inc.
Learn to lead digital transformation at Phorum 2019
Sign-up for daily news updates from Technical.ly Baltimore