Our transaction-driven network comprises 1,100 people and 23 offices in the U.S., including five offices located next to leading retailer headquarters and more than 200 people embedded on client sites.
We offer a full-service suite of integrated performance marketing solutions and deliver programs that change consumer behavior and drive profitable transactions across digital, direct, data, shopper, promotional, local, Hispanic, experiential, and performance media.
Our transaction-driven network comprises 1,100 people and 23 offices in the U.S., including five offices located next to leading retailer headquarters and more than 200 people embedded on client sites.
Zain is Chief Executive Officer of Hyper Marketing, the largest independent marketing-services network in North America. Hyper Marketing was formed by SolutionSet MediaWhiz Partnership's January 2012 merger with D.L. Ryan Cos., the largest independent promotion and shopper marketing firm in the U.S.
The newly formed company has 1,300 employees in 24 offices across the country, and delivers digital, direct, data, local, promotion and shopper marketing programs to some of the world's best-known brands. Ad Age recently defined Hyper Marketing as a "transaction-driven" network far different from the holding companies' business approach, which has been to tack on digital and sales-oriented capabilities to their traditional suite of services. At Hyper Marketing, everything revolves around changing consumer behavior and driving transactions.
Zain has counseled marketers and executed campaigns across a wide range of industries for the last two decades. His strategic approach and progressive solutions have resulted in dramatic top- and bottom-line growth for many companies in multiple categories.
Before Hyper Marketing, Zain was the President and CEO of SolutionSet MediaWhiz Partnership which he joined in mid-2010, helping energize the business and move it from a top-ten company to the second-largest independent agency in the marketing services space. Prior to joining SolutionSet, Zain was North American CEO of Euro RSCG Discovery, the digital, CRM, data and analytics arm of Euro RSCG Worldwide as well as Global Practice Leader for Euro RSCG's Retail Brands. Before Euro, he was President and CEO of BrandXp, a digital marketing and strategy firm that developed digitally-led innovations for Fortune 100 brands. He has also held global leadership positions at Bayer Bess Vanderwarker, J. Walter Thompson, Foote Cone & Belding and Wunderman Cato Johnson (now Wunderman). He began his career at Grey Advertising in India.
Zain is author of Brand Rituals: How Successful Brands Bond with Customers for Life, a new approach to building brands in today's digitally-led environment. He is a sought-after speaker on the changing marketing landscape, espousing the view that marketing needs to change people's behavior, not just attitudes, and that brands need to build bonded relationships with their core customers. He is a frequent contributor and featured in several publications including the Wall Street Journal, Business Week, and Fast Company.
Zain is a member of the Executive's Club of Chicago and a Charter Member of TiE Midwest. He formerly sat on the Board of Directors of the Retail Advertising and Marketing Association. His views on business can be found on his website, Brand Rituals.
Outside of work, Zain reaches out to the business community as a board member of the Chicagoland Chamber of Commerce and Junior Achievement. Zain is married with two teenage children and loves time on the golf course, when possible.
Paul Kramer became President of Hyper Marketing in January 2012 after the merger of digital marketing company SolutionSet MediaWhiz Partnership and D.L. Ryan Cos., the largest independent promotion and shopper marketing firm in the U.S.—of which he was President and COO. At Hyper Marketing, now the largest independent marketing services network in the U.S., Paul works closely with the CEO, and guides all aspects of business strategy and development, mergers and acquisitions, human resources, finance and client relations.
Paul has established a long track record of building high performance sales and marketing programs and communication organizations. His expertise is a unique blend of creativity and technical marketing analysis complemented by a wide range of skills: strategic planning, global marketing, national brand and account management, marketing communications, licensing, intellectual property and business development.
Paul built a strong foundation in brand positioning and advertising, spending the first 10 years of his career in posts at Grey, Bates, and Saatchi & Saatchi before joining D.L. Ryan Cos in 1990. At D.L. Ryan, Paul created the agency's shopper marketing group, and honed his promotional marketing skills. In 2005, Paul founded Catapult Marketing, a new shopper and promotions agency under D.L. Ryan, growing the company from $12 Million in net revenue to $40 Million in five years. Under Paul's leadership, Promo Magazine ranked Catapult Marketing, within two years of being founded, the 13th most strategic company in the industry. In 2010, Chief Marketer Magazine named Catapult Marketing "Promotional Marketing Agency of the Year." Paul founded Etailing Solutions under D.L. Ryan in 2011, creating the first full-service agency dedicated to helping manufacturers sell direct-to-consumer through online channels. Etailing Solutions has generated over $1 million in net revenue in its first 12 months.
Paul's career achievements have been recognized with a Promotional Marketing Association Reggie for Global Marketing on behalf of PEDIGREE® Brand Food for Dogs. A prolific writer, he has been published in numerous publications including Promo/Chief Marketer Magazine, Shopper Marketing Magazine and The HUB, and has appeared on CBS Radio Wall Street Journal CEO Report.
When not working, Paul enjoys spending time with his family, horseback riding, hunting, and motorcycle riding.
Christopher brings to Hyper Marketing a wealth of experience gained over more than 30 years in financial and operations accounting, treasury and cash management, financial analysis, and business management. Since 2009, he has served as a director at Lake Capital, an investor in Hyper Marketing. Prior to that, Christopher was chief financial officer of SourceLink, a leading direct marketing agency. From 1986 to 2004, he held various financial executive positions with Rexam and American National Can Company in their U.S. and European divisions.
A certified public accountant, Christopher began his career in public accounting at Oppenheim Appel Dixon and Harry F. Shea, where he spent six years providing audit and tax services. He holds a BA in Accounting from Indiana University and an MBA from Northwestern University's Kellogg School of Management.
Michael Miller brings nearly two decades of experience in marketing communications and business development to Hyper Marketing Inc., the largest independent marketing-services network in North America.
He works with the executive leadership team to integrate HMI's agencies and services to support the company's mission: help client CMO's develop integrated programs that drive profitable results.
Most recently, Michael was chief growth officer at MRM Worldwide, a McCann Worldgroup agency, where he led global new business development for the agency as well as its go-to-market strategy for both MRM and McCann Worldgroup. Among the domestic and global business won under his leadership were BlueCross BlueShield, Century 21, Diageo (Crown Royal, Captain Morgan, and a global SEM/SEO initiative), GM, Intel, iShares, JP Morgan Chase, Mattel, The Home Depot, U.S. Army, Verizon, Walmart and Wells Fargo.
Before joining MRM, Michael led business development at G2, a unit of Grey Global Group, where he managed the integration of network capabilities, delivery of sales, marketing strategies and creative solutions for clients and prospects. He positioned the agency to win assignments with Cache, Corcoran, Crown Imports, Dubai Properties, Lennar Home Builders, Pernod Ricard, Pizza Hut, Tishman Speyer and Wyndham Worldwide.
Prior to G2, Michael worked for Starpoint Solutions, a technology-consulting and communications firm, where he was co-founder and director of business development for the creative-services group, forging relationships with BMG, Citibank, Condé Nast, Diageo, Goldman Sachs, Lifetime Entertainment, Starwood Hotels & Resorts, Wiley and Unilever.
Michael began his ad career at Grey in New York, where he managed holistic marketing programs for accounts such as Hasbro, Mars Masterfood and Procter & Gamble. He also worked at Grey Advertising's London and Prague offices.
Michael holds a Bachelor of Science in international business from the University of Maryland. He is a 4A's New Business Committee Member and regular speaker at industry events.
Combination with Existing Epsilon Assets Solidifies Next Gen Agency Model; Will Create Nation's Leading Digital Agency
DALLAS, Nov. 9, 2012 /PRNewswire/—Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that it has reached an agreement to acquire the Hyper Marketing ("HMI") group of companies, the largest privately held marketing services agency in the United States.
HMI offers the full breadth of ROI-based marketing services through Ryan Partnership, CatapultRPM, SolutionSet and Getmembers.com, including: digital user experience design technology, specializing in websites, social media platforms and mobility; customer relationship marketing; consumer promotions marketing; direct and digital shopper marketing; distributed and local area marketing; and analytical services that include brand planning and consumer insights. HMI is privately owned by Lake Capital and its affiliates, and has approximately 1,100 employees based primarily in Chicago, San Francisco and Wilton, Conn.
The $400 billion annual marketing spend in North America continues its secular shift away from traditional general advertising and toward measurable, ROI-based targeted marketing. It is estimated that this latter market is now 50 percent of the total market and growing at a consistent mid to high-single-digit pace annually.
The ability to successfully navigate and leverage the benefits of this vast and growing market requires a new breed of agency that focuses on building customer connections. This agency model drives business performance through dynamic engagement and meaningful customer experience, and requires a number of critical capabilities. Epsilon is currently the only end-to-end solution offering the "critical five" capabilities that provide the optimal suite of solutions to capitalize on this secular shift, with a focus on meeting the changing set of needs at the CMO level:
The acquisition of HMI further expands and enhances Epsilon's current ROI-based marketing services, specifically:
Expansion into Key Industry Verticals: Epsilon's previous agency acquisition, Aspen, added significant depth in automotive, telecom, and consumer product goods (CPG). HMI will add additional scale and capabilities to CPG, telecom, retail and financial services, as well as expand into other key verticals such as energy, fitness, quick service restaurants (QSR) and technology.
Increases Critical Scale: While Epsilon currently has critical mass in all five above areas, the acquisition of HMI will essentially double the size of Epsilon's agency offering. As such, Epsilon will have far more strategic resources to interact with and assist C-Suite executives, thus enhancing the potential for offering adjacent and complementary services through a "one-stop shop."
Adding to Blue Chip Client Roster: HMI brings an enviable roster of leading global brands, including Mars, Unilever, The Home Depot, and Kellogg, with top clients showing longstanding tenure of more than seven years.
Expands Digital Capabilities: Epsilon's 45 billion plus permission-based email circulation numbers make it a top tier player in this important part of the digital spectrum. HMI allows Epsilon to further expand capabilities in key digital channels including mobile, social, targeted display, tablet and web development, and importantly, in the user experience design and creative services that are essential to create compelling content and applications for these channels.
Adds Key Talent: Led by industry veteran Zain Raj, HMI has a deep "bench" of tenured and experienced talent. Epsilon and Alliance Data are excited about the fit and synergies associated with HMI's management and capabilities, including the opportunity to further drive growth across the combined businesses.
Financial Rationale: In 2013, HMI is expected to generate approximately $300 million in revenues and $50 million in EBITDA. It has demonstrated a strong track record of organic growth, averaging in the high-single digits during the past few years. This organic growth rate is expected to continue going forward, equating to approximately 3 times expected GDP growth trends. Total consideration to be paid for HMI and existing obligations will be approximately $460 million, subject to working capital and other adjustments, or a multiple slightly over 9 times EBITDA. The transaction is expected to be accretive to both GAAP and Core EPS in 2013, and 2013 guidance will be updated accordingly when Alliance Data releases its 2012 full year results. Closing is expected before year-end, subject to customary closing conditions and regulatory approval.
Leading Digital Agency: Epsilon's 2013 revenue is expected to jump to $1.3 billion following the acquisition of HMI. The powerful combination of agency and digital assets ("digital agency") will be approximately $500 million and, based upon published rankings, Epsilon's digital agency is expected to be among the leading global agencies on a pro-forma basis.
Bryan Kennedy, president of Epsilon, commented, "HMI will be a well-received addition to the Epsilon family as we formalize our 'agency of the future' model. By bringing in expertise in new verticals, adding notable scale to existing verticals and, as importantly, providing us with critical mass across the entire digital asset spectrum, we're confident that there will be no other company out there that can deliver what Epsilon can now offer to today's C-Suite. I'm also looking forward to welcoming HMI's highly talented associates to the Epsilon family."
Zain Raj, chief executive officer of HMI, stated, "Hyper Marketing's culture revolves around our clients—everything wedoisdesignedtohelpdeliverprofitablegrowthwhilebuildingvalueintheirbrands. CombiningHMIwithEpsilon will help us provide broader and deeper solutions to our clients in a way that reflects the ongoing evolution of the marketing landscape. Our team is particularly excited about the shared values between our organizations. We're each a highly client-centric culture that delivers unmatched service. Finally, our complementary strengths across capabilities and verticals will enable our clients to choose a single partner for more of their marketing needs, ensuring a smooth ride all the way from strategy to execution without the frustrating 'hand-offs' of yesterday's fragmented marketing model."
Added Ed Heffernan, Alliance Data president and chief executive officer, "We're looking at another strong year of organic growth across all three businesses. Additionally, we've traditionally added a tuck-in acquisition here and there when it makes sense. We looked at well over 50 companies this year, got serious about half a dozen of them, and chose only one, HMI." Heffernan continued, "I would expect Epsilon to represent about a third of Alliance Data's topline in 2013, and it will have a long runway left to expand ? should be another fun year."
BofA Merrill Lynch acted as financial advisor to HMI on the transaction.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may use words such as "anticipate," "believe," "estimate," "expect," "intend," "predict," "project" and similar expressions as they relate to us or our management. When we make forward-looking statements, we are basing them on our management's beliefs and assumptions, using information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these forward-looking statements are subject to risks, uncertainties and assumptions, including those discussed in our filings with the Securities and Exchange Commission.
If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements contained in this presentation reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We have no intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise, except as required by law.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this presentation regarding Alliance Data Systems Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K for the most recently ended fiscal year. Risk factors may be updated in Item 1A in each of the Company's Quarterly Reports on Form 10-Q for each quarterly period subsequent to the Company's most recent Form 10-K.
Epsilon is the global leader in delivering direct-to-customer connections that drive business performance. Epsilon's integrated solutions leverage the power of rich transactional and demographic marketing data, strategic insights, analytics, award-winning creative and robust digital and database marketing technologies to connect brands with consumers both online and offline, increasing engagement to generate measurable marketing outcomes. Founded in 1969, Epsilon works with over 2,000 global clients and employs over 3,500 associates in 37 offices worldwide. For more information, visit www.epsilon.com, follow us on Twitter @EpsilonMktg or call 1.800.309.0505.
Alliance Data® (NYSE:ADS) and its combined businesses is North America's largest and most comprehensive provider of transaction-based, data-driven marketing and loyalty solutions serving large, consumer-based industries. The Company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today's most recognizable brands. Alliance Data helps its clients create and increase customer loyalty through solutions that engage millions of customers each day across multiple touch points using traditional, digital, mobile and other emerging technologies. Headquartered in Dallas, Alliance Data employs nearly 9,000 associates at more than 50 locations worldwide.
Alliance Data is a leading provider of marketing-driven credit solutions, and is the parent company of EpsilonŽ, a leading provider of multi-channel, data-driven technologies and marketing services, and LoyaltyOneŽ, which owns and operates the AIR MILES® Reward Program, Canada's premier coalition loyalty program. For more information about the company, visit our web site, www.AllianceData.com, or you can follow us on Twitter at @AllianceData.
Hyper Marketing is a global company and the largest independent marketing-services network in North America. The company has 1,100 employees in 23 offices, with expertise in digital, direct, data, promotions, shopper marketing, Hispanic, and media buying and planning. HMI focuses on driving transactions by responding to changing consumer behavior in a hyper-connected world. HMI companies partner with CMO's of many of the world's best known brands including Dell, eBay, Kellogg's, Office Depot, The Home Depot and Unilever to develop integrated programs that deliver profitable results. For more information visit www.hypermarketinginc.com.
Lake Capital is a private equity firm that focuses on investments in service-based enterprises across various industries. The firm currently manages more than $1.3 billion in equity commitments and seeks to build leading services companies through organic and acquisition-enhanced growth. More information about Lake Capital is available at www.lakecapital.com.