The Troy-based startup Ithos Global, which makes software to manage regulatory compliance for the cosmetics industry, has been acquired by Raleigh-based Permanent Group.
The takeover allows Ithos to leverage the operational expertise and financial resources of Permanent to scale more quickly, the companies said Monday. Founded in 2021, Permanent Group says it is dedicated to acquiring business-to-business software-as-a-service companies in order to help them scale.
“We pursued the Ithos Global acquisition because of the huge opportunities for expansion in its market,” said John Bennett, CEO of Permanent Group, in a press release. “We’re eager to start working to accelerate its near- and long-term growth potential.”
Ithos was founded by Ken Bubeck at the Rensselaer Polytechnic Institute business incubator in 2009. It now has 25 employees around the country and is based in the Quackenbush Building at 333 Broadway in downtown Troy.
Ithos was the first investment by venture fund Vik Brothers, founded by brothers Vikram Agrawal and Vikash Agrawal, who own Levrx in Troy. The brothers invested $600,000 in 2018. Bubeck said at that time that a company acquisition was part of the long-term plan.
The Ithos client base has grown to 45 in 2021, according to its website.
Ithos' strategy historically has been working with small indie makeup brands, such as Girl Undiscovered, Skyn Iceland, Pour Moi Skincare and Omni Bioceutical Innovations. Instead of using expensive regulatory consultants to expand into markets overseas, brands can access that information through the Ithos software and service.
“We continue to attract new and larger cosmetic brands because we deliver effective technology solutions with unparalleled service and expertise,” says Ken Bubeck, founder and CEO at Ithos Global. “Permanent Group truly recognized our value and the prospect to grow our market share in the cosmetics industry.”
