SEATTLE: Boutique tech firm OnPR is splitting from its parent agency Waggener Edstrom four years after being acquired. Buyout terms were not disclosed.
OnPR CEO Jody Peake said that when Wag Ed first acquired the firm, then known as PR.com, Wag Ed intended to leverage its acquired firm's wireless technology strength. But the wireless market shrank, and Wag Ed began picking up wireless clients, such as T-Mobile, which caused potential conflicts with OnPR because they were competing in wireless and enterprise tech markets, according to Wag Ed CFO Michael Bigelow.
Peake, an original partner at Wag Ed, who joined OnPR two years ago, said independence from Wag Ed would allow the agency, which has recently developed an expertise in enterprise technology, to determine its own fate.
She pointed to new clients for OnPR, including SNAPin Software, M:Metrics, Wireless Services, and Opus Research. However, the agency has also lost a number of clients in the past year, including Siebel Systems and InfoSpace.
Bigelow said the split would allow Wag Ed to focus on relationships that complement, not conflict with, Wag Ed's offerings.
One such complementary relationship is with New York-based consumer shop Maloney & Fox, which Wag Ed acquired in October 2003.