As Promised, Rapp's Engauge Keeps on Acquiring

When he got together with Halyard Capital last year and formed a new marketing agency named Engauge, legendary direct marketer Stan Rapp said he planned to build the company through acquisitions.

This week, Engauge announced one of those promised purchases. It acquired Atlanta-based digital agency Spunlogic and re-named the company Engauge Digital.

The acquisition means Engauge now has under its belt four divisions that were created by gobbling existing companies. Engauge Digital joins Engauge Communication; formerly an ad agency named TenUnited; Engauge Direct, formerly a database and direct marketing agency named Direct Impact; and StreamRight, a digital technology development firm.

In an e-mail exchange, Engauge chairman Rapp indicated the Spunlogic deal will not be the last for Engauge. “We expect to make further additions to Engauge as appropriate to fulfill our mission,” he said.

Rapp, who is in his 80s, said the Spunlogic deal brings the number of Engauge employees to about 300. Spunlogic, as Engauge Digital, will retain its Atlanta offices where 70 people are employed, he said. He would not disclose the value of the transaction.

According to Rapp, Engauge Digital will retain Spunlogic’s customers. These include some big-name brands including Boston Scientific, The Coca-Cola Company, InterContinental Hotels Group, The Home Depot, Turner Broadcasting, UPS, and the State of Georgia.

In a statement, Spunlogic CEO Jeff Hilimire, who will become president of Engauge Digital, said his 10-year-old company was often courted by potential buyers. However, he said Engauge “is truly collaborative compared to the so-called integrated agency models” and was “the perfect answer for where we wanted to take our business.”