Irish digital agency Granite Digital is beginning its US expansion following the acquisition of a majority stake in New York-based LCM247.
As part of the deal, which will see a total of €1 million invested in the US business, Granite has acquired a 75 per cent stake in LCM247′s digital division. This will lead to the formation of LCM by Granite, and LCM247′s team of 12 staff, including founder Patrick Heaphy, will move to the new entity, taking Granite’s total headcount to more than 110 staff.
Emmy-nominated creative agency LCM247 brings expertise in film production, marketing, branding and visual creativity. President Mr Heaphy will serve as chief creative officer of LCM by Granite.
“Joining forces with a dynamic and growth-focused digital agency like Granite Digital offers us the resources and shared expertise to continue pushing the boundaries in the digital and creative world,” said Mr Heaphy. “This is a thrilling next chapter for LCM247 and Granite.”
Granite is targeting in excess of €13 million in revenue this year, with the US acquisition expected to deliver $3 million in new revenue in the first 18 months after the deal closes.
Chief commercial officer of Granite Digital, Robert Carpenter, said the deal was an exciting step in the company’s global expansion and was the first step in its growth in the US. Although the company has worked on projects remotely, this acquisition will mark the first focus on growth in the region and building on relationships there.
Although the company is based in New York, Mr Carpenter said Granite was also looking at expanding into Boston and other locations on the east coast of the US.
“We don’t see any reason why we can’t win lots of new clients in that space as well, both through this but also existing partnerships and clients that we have already in our portfolio,” Mr Carpenter said.
He said the plans are to grow the overall Granite team to about 200 in the near term, with the US team expected to double within two years.
Granite Digital, which provides digital solutions in areas such as strategy, web design, web development, digital marketing and search engine optimisation, along with intelligent solutions that use AI, machine learning, next generation platforms such as blockchain and managed hosting to global clients, is seeking to become the largest independent digital agency in Ireland. Its client list includes IDA Ireland, Pfizer, Lidl, Dalata Hotel Group, Bord Bia, American Chamber of Commerce, Cork Chamber of Commerce, Shannon Airport, Uniphar, Bon Secours Health System, Travelopia and Webhelp.
Last year, Granite acquired services firm Continuum and Dublin-based Willows Consulting. Other Irish digital services businesses acquired by Granite in recent months include Connector, Webtrade, MediaOne and Apps Made Easy.
The New York office will join Granite’s existing offices in Cork, Dublin and Galway.