Periscope Equity Announces Sale of Investment in Power Digital

Periscope Equity, a lower middle-market private equity firm focused on investments in technology-enabled service and software companies, announced today the sale of its investment in Power Digital ("Power" or the "Company") in connection with a new strategic capital investment in the Company from Court Square Capital Partners.

Founded in 2012, by CEO Grayson Lafrenz, Power Digital is a leading digital performance marketing services company that utilizes data, analytics, and proprietary technology to drive digital commerce, engagement, and high ROI outcomes for leading and emerging eCommerce and DTC brands. Power combines best-in-class technology, strategy, and marketing capabilities across every stage of the funnel and consumer journey, providing clients with uniquely quantifiable solutions and unmatched ROI. SPRnova™("nova"), Power's proprietary machine learning technology and first-party data platform is core to the Company's capabilities and supports its elite operating metrics across growth, profitability, client and employee retention, sales close rates, and more.

"The Company's exponential growth is the result of the management team's flawless execution of the company's three-year strategic plan," said John Findlay, Partner at Periscope Equity. "Our partnership with Power Digital and Grayson, building a true market leader, has been an absolute thrill, and we want to congratulate the entire management team for this milestone achievement and know that the Company is well-positioned to continue on its trajectory with Court Square." 

In just over three years, headcount grew by more than 400 employees and the platform generated more than six-fold revenue growth. This transformative period is the result of the management team's execution of the Company's three-year strategic plan, which included investments across people, commercial operations, product and operations, and technology including: 

  • Recruitment of a senior leadership team to maintain and grow an already exceptional culture with industry-leading metrics such as employee retention rates over 90% and a 68% female workforce;
  • Development of a leading tech-enabled commercial organization that effectively targets specific verticals and categories across new sales, customer success, marketing and sales operations;
  • Optimization of a full suite of digital performance marketing capabilities across performance, social, and content and expansion of its digital ecosystem within established and emerging media platforms; 
  • Execution of a multi-year technology roadmap to build a highly differentiated software application and data platform and the acquisition of DataQ, a first-party data platform that accelerated nova's machine learning technology; and
  • Acquisition and integration of three strategic acquisitions including Factorial Digital, Covet, and Social Method.

"This is an incredible milestone for the company and our team," said Grayson Lafrenz, CEO and Founder of Power Digital. "The partnership with Periscope was instrumental in closing and integrating four acquisitions, aggressively investing in our proprietary technology platform to make it core to everything we do and expanding our product suite to be a highly valuable partner to our clients. I will forever be grateful to Periscope's unwavering commitment to our day-one mission and culture of becoming the most valued, respected, and differentiated privately held performance marketing platform in the world." 

"This has been one of the most rewarding partnerships in our history and represents a continuation of our successful track record of backing and partnering with founders, such as Grayson, to scale their platforms to be truly tech-enabled and highly differentiated within their ecosystems," said Steve Jarmel, Partner at Periscope Equity. "Congratulations to the entire Power team on its new partnership with Court Square."

Canaccord Genuity served as financial advisor to Power, and Kirkland & Ellis LLP served as legal counsel. 

About Periscope Equity:

Periscope Equity is a Chicago-based private equity firm focused on investments in technology-enabled service and software companies across - Digital Marketing, Healthcare Technology, Security Solutions, and Business Process Automation. Periscope specifically targets companies that are founder-owned, with mission-critical products and service offerings, a history of sustainable profitability and known avenues to accelerate growth. In alignment with proven management teams, Periscope provides strategic, operational, and commercial expertise to drive superior investment returns. Learn more at www.periscopeequity.com.

About Power Digital:

Power Digital is a leading, data-driven performance marketing company that is nationally recognized for its ability to combine the best of art and science. As a tech-enabled full-service firm, the company offers best-in-class services that provide best-in-class full-funnel marketing. Power Digital is hyper-focused on helping brands scale revenue and increase profits by using their 1st party data and Power Digital's proprietary data warehouse to guide strategy, ultimately driving irrefutable value for clients. Unique to Power Digital is its proprietary, machine-learning platform SPRnova™ that can analyze any business's growth opportunities with a corresponding roadmap of how to execute and track progress across every marketing channel. Leveraging its team of the nation's leading consumer strategists, creatives, and data scientists, Power Digital provides scalable and tangible marketing solutions for each stage of the funnel and for every milestone of the consumer journey. For more information, please visit www.powerdigital.com.

Media Contacts

Alex Friedman

afriedman@periscopeequity.com

Source: Periscope Equity

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Principal, Periscope Equity LLC
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