BDO buys digital marketing firm DemandGen

BDO USA LLP is acquiring DemandGen International Inc., a digital marketing strategy and technology services agency, bolstering the Top 10 Firm’s tech services.

DemandGen will be joining the BDO Digital LLC advisory business. The deal, announced Tuesday, is expected to close March 16, subject to closing conditions. Financial terms were not disclosed, but DemandGen earned $12.6 million in annual revenue, while BDO USA had $1.8 billion in annual revenue last year and ranked No. 7 on Accounting Today‘s 2020 list of the Top 100 Firms. The combination will add DemandGen’s marketing technology and consulting services to BDO’s existing digital services for clients.

The deal comes as more accounting firms are expanding their advisory and consulting practices, particularly in the area of technology services. The pandemic has also seen many firms help clients adjust to the new ways of doing business remotely and bringing in customers with the latest technology.

BDO New York offices

Photo: Richard Falco

“The unforeseen challenges facing businesses over the past year pushed leaders to quickly prioritize digital transformation,” said Jay Duke, national managing partner for advisory services at BDO USA, in a statement Tuesday. “The role of CMOs and other key marketing decision-makers in identifying products, services and processes that capitalize on these accelerated opportunities for growth has never been more important. The addition of DemandGen will enhance BDO Digital’s marketing technology and advisory capabilities so we can continue to help our clients evolve and to adopt new methods and technologies for driving growth.”

BDO, based in Chicago, plans to maintain DemandGen’s main office in San Ramon, California. DemandGen has a total of 68 employees, including six in San Ramon. BDO Digital already has more than 400 professionals, including digital strategists, systems integrators, data scientists, software developers, change management professionals and industry-specific advisors.

DemandGen was founded in 2007 and provides marketing automation, customer relationship management and technology services. The firm has performed more than 600 engagements in the past 13 years. It partners with a number of technology companies, including Adobe, Oracle, Salesforce and others.

“Especially now, all businesses must be able to digitally transform — and fast,” said DemandGen CEO David Lewis in a statement. “As we grow alongside our clients, combining with BDO Digital allows us to expand our scope of capabilities, resources and geographic reach, and collaborate with an expert team of like-minded partners and professionals across all industries.”

M&A has been a major component of BDO USA’s growth strategy for some time. In January, in a major deal, it added Morrison, Brown, Argiz & Farra LLC, a Top 50 Firm in Miami, but that was its eighth M&A deal in the past year. In 2020, its deals included Cosyntris Advisory Network in Denver, Hertzbach & Co. in Owings Mills, Maryland, and Quantum Global Advisors in Chicago. Last July, it expanded in Colorado and Wyoming by adding ACM LLP, and in June, it added Piercy Bowler Taylor & Kern CPAs, a firm based in Las Vegas, expanding its presence in Nevada and Utah.