Acxiom Extends Retail Solutions with Acquisition of Equitec

Acxiom® Corporation today announced it has expanded and enhanced its retail business solution capabilities with the acquisition of Equitec, based in Cleveland, Ohio.
 
The acquisition pairs Acxiom — a global leader in customer information management and technology — with Equitec, a business with strong marketing and merchandizing optimization expertise in the retail industry. All Equitec principals are being retained and will continue to lead this practice in support of the company’s retail market growth strategies. Terms of the asset purchase were not released. Acxiom expects the transaction to be accretive to earnings in fiscal 2008.

"This acquisition enables Acxiom to offer a unique combination of custom consulting and analysis, deep customer insight and standardized assessment that accelerates financial return for retailers," said Acxiom Company Leader Charles D. Morgan. "Retailers will be able to confidently adjust merchandise assortments, to better predict market and store potential, to accurately assess new product launch opportunities and to clearly identify underserved markets and segments, all derived from the unique needs of consumers in individual store trading areas."

The acquisition solidifies a successful business relationship that dates to 1999 when the two companies initiated the Market Advantage joint venture. That experience generated numerous client results including the generation of $14 million in new business on a $100 million base; a reduction of $17 million in working capital in the first year of an allocation re-program; and identification of $160 million in revenue in underserved markets for a leading specialty retailer.

"Retail is increasingly a difficult business in which to prosper," said Mike Henry, Chief Executive Officer and founder of Equitec. "It’s no longer good enough to know ‘what’s selling;’ increasingly ‘who’s buying’ matters more. Progressive retailers will locate stores, adjust their formats and allocate and assort merchandise more frequently through the lens of deep consumer insight."

"Acxiom now has the capability to diagnose, build, deliver and leverage solutions that enable retailers to respond more confidently and accurately to consumer buying behavior within current or planned trading areas," said Tim Suther, Acxiom Retail Client Services Leader. "We will accelerate time-to-benefit for those retailers seeking to better understand consumer behavior and its influence upon merchandizing, marketing, operations decisions and profits."

As Acxiom associates, Equitec’s employees will continue to provide industry-leading service to clients in retail, manufacturing and travel sectors. Notable Equitec clients include Black & Decker, The Home Depot, EarthLink, General Electric, KB Home, Masco Companies, Sabre Holdings, Saks and Travelocity. Equitec’s headquarters are in Cleveland, Ohio, and it has a regional office in Colorado.