By Ryan Naraine
New York-based m-business consulting firm Mobilocity, Inc. on Tuesday announced it would acquire struggling Web development shop kpe.
Financial terms of the transaction, which was handled by restructuring specialists Recognition Group, were not disclosed. The new company will be known as kpe, a Mobilocity company. Both companies are privately-held.
Mobilocity, best known for looking at all available options from various platform developers instead of selling a specific product, said the combined firm would offer services in digital branding, communications strategy, Web development and mobile strategies.
For kpe, which has worked for the likes of Sony Electronics, Neiman Marcus, Ralph Lauren Polo.com and About Inc., the acquisition gives it new life in a contracting marketplace for its Web services. The company has quietly implemented belt-tightening measures in recent months and retained the Recognition Group to shop its assets.
Recognition Group president Kaleil Isaza Tuzman, who handled the kpe restructuring assignment, described the acquisition as a “positive outcome for kpe employees, clients and investors and a continuation of the firm’s tradition in providing strong client service.”
Second Frontier Capital Partners, the private equity arm of the Recognition Group, and Grey Global Group, have recently provided kpe with cash investments.
Chief executive of kpe Kevin Labick, who assumes the new role of VP of solutions in the new entity, said the future as a Mobilocity company better positions the company to deliver its services. “There is great potential for companies to use emerging technologies today to enhance brand, solve business issues or better communicate with target audiences,” Labick said.
Mobilocity is backed by financial services giants J.P. Morgan Chase and Morgan Stanley as well as Siemens and Cambridge Samsung. The company serves clients in the U.S., Europe and South America.