NEW YORK: Marketing services holding company The CHR Group has acquired digital marketing firm Stone Canoe.
The agency, which was acquired on November 20, is continuing to operate from its Toronto offices, with an additional presence in CHR's corporate headquarters in New York City.
CHR needed a digital marketing firm, and Stone stood out, said Jonathan Zaback, the holding company's chief strategy officer and partner.
“For every challenge [Stone Canoe] comes across with clients, they have four to five different solutions immediately,” said Zaback.
MD Jason Agar and president Scot Bryson will continue to lead an 18-employee team under the Stone Canoe brand, which will be retained. No layoffs are planned.
“Our philosophy is that if you want to acquire a company, it is the leadership that makes it special,” said Zaback. “If you go in and chop the company's head off, why are you acquiring it in the first place?”
Stone Canoe decided to sell to CHR, because it was interested in the growth opportunities an acquisition could unlock, Bryson said.
“Extending our product and service offering into the US market, along with a stronger platform to access larger Canadian businesses were the two main factors for us,” he said.
Stone Canoe's client list includes Yahoo, H&R Block, Samsung, Hankook Tires, and General Electric. Zaback said there are no client conflicts as a result of the acquisition.
Both firms declined to comment on the price of the deal or Stone's revenue for the past year.
Following the procurement of Stan Adler Associates earlier this month, the deal represents CHR's seventh acquisition this year. The firm expects to close another two deals before the end of the year, according to Zaback, and next year it plans to expand its global footprint.