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Tag: WillowTree

$1.2B WillowTree purchase completed

Telus International Inc.’s $1.225 billion purchase of Charlottesville-based software company WillowTree Inc. has been completed, the Canadian tech company said Wednesday. The acquisition was announced in October 2022.

The purchase included $210 million of assumed debt, of which $125 million was to be settled in Telus subordinate voting shares.  Approximately $160 million will be reinvested by certain eligible management team members and settled subject to certain performance-based criteria, and the remainder was to be paid in cash upon closing.

Majority stakeholder Insignia Capital Group also sold its stake in WillowTree, after having invested in the company in 2018.

According to Wednesday’s announcement, WillowTree will add front-end design-and-build capabilities to Telus’ offerings. Founded in 2008, WillowTree is a software company with roots in mobile app design and development. It has 13 global studios in the U.S., Brazil, Canada, Portugal, Spain, Poland and Romania and more than 1,000 digital strategists, designers, engineers and project managers. WillowTree ranked No. 8 in Adweek’s 2022 list of the fastest-growing agencies in the Southeast United States, and 60th on the national list.

“Our company’s thoughtful approach to maximizing our established market presence post-acquisition includes carefully preserving WillowTree’s strong brand equity while clearly communicating to the market our combined entity’s larger scale and broader suite of complementary capacities that are now enabled for existing and prospective clients,” Telus International President and CEO Jeff Puritt said in a statement.

WillowTree works with brands including Fox, CBC, PepsiCo, Anheuser-Busch InBev, Marriott and others. Its 2021 revenue total was $140 million.

Telus is a communications technology company with $17 billion in annual revenue and operates in 28 countries.

In a letter on WillowTree’s website, President Tobias Dengel wrote, “Above all, we wanted to join a company that, like us, treats its employees and clients with respect and cares about the communities in which we work. While TI and WillowTree offer complementary services, at the end of the day, we are in the same business — finding the best team members and giving them the autonomy and opportunities to delight clients.”

Barclays and Rothschild & Co. served as financial advisers on the deal, Shearman & Sterling LLP served as legal counsel, and Scotiabank provided committed financing to Telus International for this transaction.

December 2022 Top Five

 

The top five most-read daily news stories on VirginiaBusiness.com from Oct. 14 to Nov. 14 included an announcement of the acquisition of Charlottesville-based WillowTree Inc., which was founded in 2008 as a mobile app developer.

1  |  Something in the Water will return to Va. Beach in 2023

Music superstar Pharrell Williams announced his signature music festival will return
to his hometown April 28-30, 2023. (Nov. 2)

2  |  Genworth insurance co. settles class action for $25 million

A subsidiary of the Fortune 500 insurer settled with plaintiffs who alleged their life insurance policies were subject to unlawful cost of insurance increases. (Oct. 18)

3  |  Petersburg approves Cordish Cos. for possible casino

Petersburg City Council took a gamble on the Maryland-based developer to build a
casino there — even though the city doesn’t yet have General Assembly permission
to build one. (Oct. 19)

4  |  Telus International to acquire WillowTree for $1.2 billion

The Canadian tech company’s acquisition of digital products consultancy
WillowTree is expected to close in January 2023. (Oct. 27)

5  |  Bon Secours breaks ground on Suffolk hospital

The $80 million, 98,000-square-foot Bon Secours Harbour View Hospital
is expected to be completed in 2025. (Oct. 25)

Telus International to acquire WillowTree for $1.2B

Charlottesville-based WillowTree Inc., recently recognized by Adweek for being one of the fastest-growing agencies in the nation, has entered into an agreement to be acquired by Canadian tech company Telus International Inc. for $1.225 billion, Telus announced Thursday.

The acquisition is expected to close in January and is subject to regulatory approvals.

Under the agreement, Telus International will acquire WillowTree for a total enterprise value of $1.225 billion, which includes $210 million of assumed debt, of which $125 million will be settled in Telus subordinate voting shares.  Approximately $160 million will be reinvested by certain eligible management team members and settled subject to certain performance-based criteria, and the remainder will be paid in cash upon closing, according to the news release from Telus.

As part of the transaction, majority stakeholder Insignia Capital Group will sell its stake in WillowTree after initially investing in the company in 2018.

Founded in 2008, WillowTree is a software company with roots in mobile app design and development. It has 13 global studios in the U.S., Brazil, Canada, Portugal, Spain, Poland and Romania and more than 1,000 digital strategists, designers, engineers and project managers.

“We are excited to share today’s news alongside Telus International, announcing that we will unify our teams and missions to design, build and deliver premium, disruptive and human-centered outcomes for some of the most admired brands in the world,” said WillowTree CEO Tobias Dengel  in a statement.

WillowTree works with brands including Fox, CBC, PepsiCo, Anheuser-Busch InBev, Marriott and others. Its 2021 revenue total was $140 million.

Telus is a communications technology company with $17 billion in annual revenue and operates in 28 countries.

“Since Telus International’s inception in 2005, our company has grown, evolved and expanded our global team and capabilities by organically building, selectively partnering and strategically acquiring, which has positioned us to consistently capitalize on market opportunities as the pace of demand for digital solutions grows,” Telus International President and CEO Jeff Puritt said. “Today marks the next step in our company’s journey, and I look forward to working alongside the talented members of the WillowTree team to jointly raise the bar for ourselves to better envision, create and implement high-impact, technology-powered brand connections that fuel customer loyalty and establish and maintain industry market leadership for our clients.”

 

Two Va. agencies make Adweek’s fastest growing U.S. agencies list

Two ad agencies that call Virginia home have landed on Adweek’s 2022 list of the fastest-growing U.S. ad agencies, the publication announced Monday.

Richmond-based creative agency Dotted Line ranked third on the list of Adweek’s fastest-growing agencies in the Southeast, and No. 22 on the list of the nation’s 75 fastest-growing agencies. Charlottesville-based Willow Tree ranked No. 8 for the Southeast and 60th on the national list.

To be eligible for the list, agencies provided three years of earned revenue data (2019 through 2021) and must have posted at least $250,000 in 2019 revenue.

Dotted Line Founder and CEO Lauren Sweeney started the agency in 2014, and it has grown from six employees to more than 20 full-time workers and about 10 fractional/part-time employees. Sweeney wants Dotted Line to be seen as a top boutique agency in the mid-Atlantic in the next seven to 10 years. Dotted Line’s clients include Bon Secours Mercy Health and Spinnaker Consulting Group. About half of the agency’s clients hail from Central Virginia and the rest are based around the country.

According to Adweek, Dotted Line grew 217% from 2019 to 2021. Sweeney attributed the agency’s growth over the past three years to setting a clear vision and goals, as well as being values-driven.

“I think it’s a proof point for all the hard work we’re trying to do for our clients,” Sweeney said. “We’re really a client-first agency and really work to understand our client’s business and how we can best help them grow their business and brand.”

Charlottesville-based WillowTree Inc., a software company with its roots in mobile app design and development, has expanded to seven global studios, according to Adweek. WillowTree experienced 90% growth between 2019 and 2021, according to Adweek. The company led design and development for the Pepsi Super Bowl LVI Halftime Show app, Fox’s first weather app, and work for Dairy Queen, according to Adweek. Founded in 2008, the company has more than 1,000 employees. Its clients include HBO, National Geographic, Hilton, McDonald’s and other Fortune 500 companies.

“This past year has been one of significant and steady growth for WillowTree,” Chief Marketing Officer Keith Miller told Virginia Business. “We continue to add more of the world’s most admired brands to our client roster. We expanded our geographic footprint with new offices in Vancouver and Porto Alegre, Brazil. And our team is now over 1,000 strong.”

WillowTree’s three largest offices are in Charlottesville; Durham, North Carolina; and Columbus, Ohio. Since 2008, the company has delivered more than 700 native mobile apps, websites and other digital products.

“Recognition from outlets like Adweek is a testament to the world-class work being done by our team and to the outcomes we’ve achieved in partnership with our clients,” Miller said.