RDW Group Inc., one of the state’s largest advertising firm, announced Monday the acquisition of Boston-based iFactory, an award-winning digital media company in Boston. The way RDW Group Inc. President Mike Doyle sees it, the acquisition was a two-for-one.
First, merging with the 30-employee firm gives Providence-based RDW an instant presence in Boston,a market it long has viewed as a logical next step after growing into the largest advertising agency in Rhode Island.
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But the deal also bolsters RDW’s services in what Doyle sees as an increasingly critical realm for communications agencies: interactive media.
“This broadens our skill set in interactive, which I honestly believe is the future of the advertising industry,” Doyle said. “I think someday we’ll use our (computer) monitor as the principal means of doing everything. Now we have a platform and the technological capability to put us at a competitive advantage in the long term.”
iFactory specializes in Web site development, having launched more than 100 successful sites since 1996. Its services range from basic marketing pages to solutions for intranets, e-commerce, search-engine optimization and animations.
The 12-year-old agency primarily serves the health care, higher education, financial services, life sciences and nonprofit sectors, a portfolio that mirrors RDW’s areas of specialization. Its client list boasts Harvard University, Rhode Island School of Design, Merck & Co., Simon & Schuster, the Ford Foundation and Museum of Science, Boston.
Under the deal, RDW will shift its 12-person interactive division to iFactory’s office at 368 Congress St. in Boston starting as early as this week. Doyle said there would be no layoffs and would not disclose terms of the deal.
Before settling on iFactory, RDW spent more than two years performing due diligence on more than 30 Boston-area communications agencies in a quest to gain a foothold in the Hub, Doyle said. iFactory is among the few remaining interactive-media firms in Boston following a four-year industry shakeout, and is profitable, he said.
“This is an important strategic move for us,” said Alen Yen, iFactory president and creative director, in a news release. “Joining forces with RDW Group greatly enhances our capabilities and provides us with a much stronger foundation from which we can build and enhance our client offerings.”
Dennis Franczak, head of RDW’s interactive division, will lead account service and business development in the Boston office, while Yen and Glenn Morgan, also a principal at iFactory, will oversee creative services and management services, respectively.
Eventually, RDW plans to grow the Boston office beyond interactive offerings into a full-scale agency, including traditional advertising and public relations services.
Doyle said RDW’s focus on small- and mid-sized accounts, including many independent companies and nonprofits, often requires close collaboration with clients – something that drove the need for a Boston presence.
“Boston, like Rhode Island, is incestuous when it comes to business. If you’re not there, you don’t get called,” Doyle said. “And we can’t get any bigger in Rhode Island than we already are.”
RDW has grown largely through acquisitions since its founding in 1986 by Doyle, principal Tom Walsh, and now-retired Phil Rivers. Its most recent deal was the November 2003 buyout of East Providence advertising firm Donnelly & Duncan.
RDW likely will look for more acquisition targets, possibly in Connecticut or New Hampshire, Doyle said.
The iFactory acquisition gives privately held RDW 120 employees and about $15.5 million in gross annual income, which makes it the largest independent communications firm in New England, Doyle said. He said other large agencies in Boston, such as Hill Holliday and Mullen Agency, are owned by large conglomerates.
RDW has amassed more than 80 accounts, mostly in Rhode Island and Massachusetts, including GTECH Holdings Corp., Blue Cross & Blue Shield of Rhode Island, the Massachusetts Medical Society and jewelry retailer Ross-Simons.
