Seattle-based digital marketing agency New Engen has acquired Acorn Influence, an influencer marketing agency headquartered in Rogers, Arkansas.
With the acquisition, New Engen is gaining about 50 employees, co-founder and CEO Justin Hayashi said, putting the combined company's headcount at 235. Hayashi added that although employees can remain working where they are, the company would welcome anyone moving to Seattle. Acorn Influence will keep its brand for the time being.
"They have clout. They have a reputation. They've built a lot of trust with really great brands, so we want to continue to allow that to be a standalone," Hayashi said. "Over the long horizon we're going to explore what would a joint-force branding look like, but no commitments to that any one way or the other."
The companies aren't disclosing the financial terms of the deal.
Acorn, founded in 2014, connects brands with social media influencers that best fit their products. Hayashi said Acorn specializes in influencers who are a step below celebrities like Kim Kardashian, instead focusing on influencers that have a more authentic feel. Its clients include Kraft, Procter and Gamble, and The Clorox Co.
New Engen, meanwhile, counts The Home Depot, Google and Jockey as clients. In December, New Engen received an investment from Insignia Capital Group to help with growth and expand its services, but the amount wasn't disclosed.
Founded in 2016, the company's services include media strategy, market research and brand strategy.
The influence of social media in retail is growing more pronounced. A recent report from the global IT company Accenture said social commerce could net $1.2 trillion in global sales over the next three years, and it could surpass other retail options by 2025.
"The market has witnessed the rise of upstart and disrupter direct-to-consumer brands who've grown entire new businesses leveraging direct response advertising in social channels like Facebook and Instagram," OptiMine Software CEO Matt Voda previously told the Business Journal. "Smart brands can get their products in front of the right audiences in more targeted and personalized ways."
New Engen has office space in Belltown but is looking for a larger office somewhere in Seattle for this upcoming fall.
"We believe there is value in employees having the option to go to a shared common space," Hayashi said. "We're looking in Seattle. We have employees on the Eastside, north side, south side, some in Tacoma, so we want to find an area that's easily accessible."
