Wirestone Acquires Two Midwest I-Shops - Brief Article

Brandweek, Feb 5, 2001 by Erik Gruenwedel

At a time when both traditional and interactive ad agencies are downsizing, Wirestone--which sells its services to regional mid-sized companies--is acquiring. Tomorrow the company will announce the acquisitions of Chicago-based DCG Chicago and Milwaukee-based Website Solutions. The two Midwest creative shops each claim $1 million in revenue and specialize primarily in creative campaigns for the Web.

While financial terms were not disclosed, these two most recent acquisitions are the fourth and fifth for Wirestone, based in Emeryville, Calif., since its formation last April. The company projects $50 million in revenue this year, and now has 185 employees in 11 regional offices throughout the United States. The offices are in Costa Mesa, Calif.; Seattle; Boise, Idaho; Sacramento, Calif.; Denver; San Diego; and Fort Collins, Cob. Wirestone targets an e business market expected to top $907 billion by 2002, according to Giga Information Group, a Cambridge, Mass-based research company.

"While we're certainly aware of the changes in the marketplace, when the market does turn, we will be the most viable and profitable," said Chris Running, president and CEO of Wirestone. "The timing is ideal."

Anne Siegel, Tom Nigut, Jim Parker and Paul Dam, now partners in the Chicago acquisition DCG, will become Wirestone vice presidents and will double their employee base from 12 to 24. Primary clients include Chicago-based Jim Beam Brands Co., Motorola and A.T. Kearney.

Said Siegel, "[We now have] the opportunity to become a national firm and expand our services and capabilities in partnership with other Wirestone offices." Siegel is an ad veteran with more than 25 years experience in marketing, graphic design and Web development.

Jim Maksymiu, product manager at Jim Beam Brands, said DCG's increased resources will enable his company's Internet brand-building strategy to "evolve ... on a global basis." Wirestone also wants to pursue traditional ads that drive traffic to a client's Web site, according to Wirestone's Running.

"[Online ads] are still a very important part of the mix," he said. "But the sense of urgency has changed."

For the 12-employee Website Solutions, the merger provides the opportunity to move beyond being a boutique firm and target Fortune 1000 to 3000 companies at the next level, according to Running. Website Solutions' major clients include Panasonic, Lotus Software, Fred W. Usinger, Mitchell International Airport, Frank Mayer & Associates, and Mustela USA. Running added that the downturn in the economy has prompted more companies than "we have bandwidth for" to seek membership in the Wirestone network.

"We've taken on a bit of the 'White Knight' element," said Running.