A Canadian technology firm has acquired a majority stake in a company with a triple-digit headcount in Durham – giving the company a bigger wallet to hire in the Bull City, the CEO says.
Telus International has acquired app developer WillowTree, based in Charlottesville, Virginia, in a deal the companies said is worth more than $1.2 billion. The deal, expected to close in January, has Telus acquiring the majority stake from Insignia Capital Group.
In an interview, WillowTree CEO Tobias Dengel said the firm had been looking for a partner for sometime.
Insignia Capital Group had invested in WillowTree about four years ago and was looking for an exit. WillowTree was “looking for a partner to help us grow to the next level,” Dengel said.
“We were talking to a variety of potential investors, but it pretty quickly became clear that they were the best option for us across the board,” Dengel said.
For the firm’s more than 150 employees in Durham, it means “more growth,” he said, pointing to Telus’ Fortune 500-rich client roster. Dengel said to expect more jobs at the Durham office, where WillowTree’s growth is a direct company benefit, as employees have equity stakes in the company.
WillowTree has already been a growth story for Durham. The company announced plans to bring nearly 100 employees to Durham about seven years ago, and delivered. The firm picked Durham over competing offers in Georgia and Colorado after piloting the office with a handful of employees. It came down to talent availability – something the company would utilize over the years as it grew.
WillowTree has made acquisitions of its own, such as last year’s buyout of Brazilian firm Poatek.