Magnet 360, a Minneapolis-based marketing and technology consultancy, today announced it has acquired Reside, a Minneapolis-based cloud solutions firm, to establish a single entity that will provide a comprehensive set of social business services. The new business will operate under the name Magnet 360, with a Minneapolis headquarters and an office in New York City.
“We’re coming into this space early, and already we are seeing amazing traction,” said Scott
Litman, Magnet 360 founder and managing partner (photo), in the company’s news release. “Our clients – executive leaders – are recognizing that social is the next big thing that will transform the way we do business and engage with customers and other audiences. They are looking to us to help build and manage programs that will deliver meaningful and measurable outcomes.”
The news release said the new entity’s offerings will include CRM, social, mobile, user experience, agile application development, insights and analytics, marketing automation, and channel marketing – “all key components of an enterprise social strategy.”
The company said its social focus, paired with its deep technical capabilities, is “what will make Magnet 360 unique among agencies.” It quoted Jim Schroer, Magnet 360 investor and former EVP Global Sales, Marketing, and Service for Chrysler: “The demand for this kind of integrated offering is huge. Companies need to embrace social to stay competitive. That doesn’t mean that existing marketing programs go away – but it does mean that they need to integrate to an overall social strategy. Today’s big agencies were built for a TV-centric marketing world; Magnet 360 is shaping itself around the new integrated, social world.”
The company said the combined forces of Magnet 360 and Reside are already working with several leading brands to plan and implement social business programs. Active clients include General Mills, Ecolab, Medtronic, 3M, Honeywell, Toro, AMC Theaters, and Carnival Cruise Lines. It said the new Magnet 360 organization is planning for market expansion and rapid growth.
“We’ve worked with hundreds of clients to help them implement cloud solutions with social elements,” said Matt Meents (photo), Reside founder and now Magnet 360 Managing Partner, in the news announcement. “But that was just the tip of the iceberg. This combination allows us to enable the social business holistically, with total integration between marketing and IT and with exponentially greater bandwidth. It’s a very opportunistic time for our clients – both B2B and B2C – and we’re excited to help them gain huge competitive advantage in this space.”
Update 4/5/12: The “new” Magnet 360 has more than 60 employees in total, the majority in Minneapolis. It also has a New York office. The company said “all Reside and Magnet 360 employees have been retained in this transaction.” It also stated it is currently on a $15M annual run rate, with plans to grow revenue to $20M total in 2012.