SAN FRANCISCO: Holding company Next Fifteen Communications Group has acquired Nectar Communications, adding to its stable of technology-focused agencies.
Nectar will retain its branding and will continue to operate as an independent, standalone business. Rachel Petersen and Tracy Sjogreen, who both serve as cofounder and principal, will continue to lead the firm using those titles. The deal closed in late November.
"We have long admired Nectar and in talking with [Petersen and Sjogreen] it became clear that they shared our vision of how specialized, data-driven comms will evolve in the years ahead, making this an ideal partnership," said Next Fifteen CEO Tim Dyson in an emailed statement. "We could also see significant opportunities to collaborate with other parts of the Next 15 family given the clients and types of clients we have in common."
No layoffs will result from the acquisition; Nectar is hiring staff, said Sjogreen.
"[Dyson] has always been a great mentor to us since we started our business," said Petersen. "We’ve had so much momentum and positive growth that we felt like we were operating in a position of strength and to push through to the next level, we wanted to have more power behind us, so it seems like good timing."
There are no client conflicts resulting from the deal, said Sjogreen. Nectar predominantly works with companies in the technology industry such as Google and Amazon Business. It previously worked with Salesforce on corporate communications.
However, Nectar’s client list isn’t limited to the tech sector. It started working with Levi Strauss & Co. as the brand’s corporate PR AOR in December, noted Petersen. Levi Strauss continues to use TrailRunner for financial communications, she said.
Nectar is headquartered in San Francisco and has offices in Seattle and New York, as well as a location in Austin, Texas, that it opened last year. The 11-year-old firm has 38 employees. Before cofounding Nectar, Petersen worked at Next Fifteen's Outcast for 10 years.
Financial information from the deal was not disclosed.
Last year, Next Fifteen also acquired the U.S. division of Health Unlimited in a deal worth up to $45 million, with plans for it to rebrand as M Booth Health and operate as a separate agency reporting to M Booth CEO Dale Bornstein.
In late 2018, Next Fifteen merged tech-focused agencies Text100 and Bite into a combined firm it christened as Archetype last year. The holding company’s other PR firms include OutCast, Lexis and M Booth.
For the six months ending on July 31, 2019, Next Fifteen posted a revenue increase of 11% and an increase of 14% in adjusted income before tax.