R2i has announced today [Sept.15, 2016] that Baird Capital has made a significant investment for a majority interest in the company. Baird Capital makes private equity, growth equity, and venture capital investments in strategically targeted sectors around the world through offices in Chicago, London, and Shanghai. R2i’s senior management will retain a considerable equity stake in the agency; terms of the transaction were not disclosed. R2i was represented by investment banking firm Petsky Prunier in this transaction.
R2i is a full-service agency with practice groups focused on integrating marketing cloud technology with brand expression and demand generation for a nationwide client base of mid-market and enterprise level brands. The agency was awarded Adobe Marketing Cloud Mid-Market Partner of the Year for its more than 400% year-over-year growth in its Adobe practice and has consistently produced award-winning work as recognized by Communicator Awards, W3s, Webby Awards, and Addys.
Baird Capital was attracted to R2i’s consistent revenue and market growth rates as well as its ability to serve a fragmented market with deep expertise across key pillars of marketing. The investment will provide R2i with outside capital to support its strategic direction and growth plans. Tom Costello, Principal at Baird Capital, commented, “We believe there is significant opportunity for an agency of R2i’s size to lead the mid-market with its technology expertise and ability to build and run multi-channel customer experiences. Our investment is intended to scale and fuel their growth more quickly, both organically and through acquisitions.”
R2i’s growth plans will center on expansion within specific geographic markets, industry verticals, and across its marketing cloud center of excellence which is inclusive of strategic partner channels like Adobe, Sitecore, and Acquia Drupal. “We’ve seen growing investments among mid-market CMOs in digital transformation and in order to get that right, and show ROI on that investment, they need partners who can help them build out a mature marketing cloud solution and run connected customer experiences. Baird Capital understands this is our mission. Their investment will support our continued growth in this space,” said R2i CEO Matt Goddard.
Matt Goddard will continue to serve as CEO of R2i; Tom Beck runs the agency’s Demand Generation Practice Group and David Taub runs the agency’s Marketing Cloud Practice Group. Owen Sullivan from Baird Capital will serve as Chairman of the Board.
About Baird Capital:
Baird Capital makes private equity, growth equity and venture capital investments in strategically targeted sectors around the world. Having invested in more than 295 companies over its history, Baird Capital partners with entrepreneurs and, leveraging its executive networks, strives to build exceptional companies. Baird Capital provides operational support to its portfolio companies through teams on the ground in Asia, a proactive portfolio operations team and a deep network of relationships which together strive to deliver enhanced shareholder value. Baird Capital is the direct private investment arm of Robert W. Baird & Co. For more information, please visit www.BairdCapital.com.