iCrossing received $62 million in funding last week, and Jeffrey Herzog, the digital marketing company’s founder and CEO, said that a portion of it would go towards “strategic acquisition capital.” Herzog wasn’t kidding – iCrossing has now bought Proxicom.
iCrossing Acquires Web Development Agency
“iCrossing’s DNA is in search, which represents consumer interest and intent,” explained Herzog in a press release. “Proxicom’s DNA is in driving superior brand and user experiences. Together, we are poised to define the next generation of digital marketing by creating experiences – whether they are through the Web, mobile or emerging channels – that are driven by the consumer perspective.”
Indeed, this acquisition has made iCrossing the world’s largest digital marketing agency; it’s probably poised to do anything it wants. And here’s where an interesting bit of speculation comes in. Janet Driscoll Miller writes, “I personally expect an IPO. Because the main funders behind this acquisition are venture capitalists, they’ll want to recognize a return on investment as soon as they can. And I also expect that the founders of iCrossing will want to cash in as well as the SEM market not unlike the web design and development market, becomes more commoditized over time.”
That makes sense, and there’s also evidence to support Miller’s opinion – in the release, Proxicom’s COO emphasized his desire to “raise the ROI bar even higher.”
