E-commerce company Digital River Inc. announced Tuesday that it has received $50 million in growth equity from its owner, Siris Capital Group. The round of fundraising also had participation from Digital River's other investors.
The company plans to use the money to grow, both by hiring and through acquisitions. It will also use the money to ramp up its marketing and advertising efforts.
"We're really bullish on growth," Digital River CEO Adam Coyle said in an interview with the Business Journal. Coyle was a partner with New York-based Siris before he became the head executive at Digital River.
Until recently, Digital River was in the process of shrinking, cutting back over $100 million in revenue and selling off dozens of companies it had previously acquired. Those days are now done, Coyle said.
"The time of large-scale divestitures is over," he said. "We're back in the market, looking for opportunities."
Siris has also allowed Digital River to reinvest some of its earnings back into the business, Coyle said.
Digital River is an e-commerce company that handles the parts of online transactions that customers don't see, like payment processing. It also acts as the seller of record for its clients and assumes liability. Some of its clients include Samsung and Adobe.
Siris bought Minnetonka-based Digital River for $840 million in Feb. 2015. That took the once-public company off of the Nasdaq stock exchange.
Coyle didn't get into specifics about Digital River's financials but said its 2019 revenue was north of $200 million and the company is profitable.
Digital River has 419 employees in Minnetonka and 1,267 employees worldwide. With a revenue of $231.00 million in 2018, it is Minnesota's 81st largest private company.
