Chicago, IL – Rightpoint Consulting LLC (“Rightpoint” or the “Company”) has secured a $55 million equity investment from New York-based Stella Point Capital, LLC (“Stella”). Headquartered in Chicago, with offices in Detroit and Denver, Rightpoint is an award winning hybrid digital agency and IT consultancy, specializing in employee engagement, customer experience, custom application development, cloud strategy, CRM and mobile. Driven by the firm’s passion for pragmatic thinking, Rightpoint’s business philosophy is to rethink the “typical” consulting model, combining attributes of management consulting, IT consulting and creative agency services to help clients drive business results by solving strategic problems. With a client base of more than 250 companies, Rightpoint was named to Forbes’ 2014 list of America’s Most Promising Companies and Crain’s 50 Fastest Growing Companies in Chicago in 2014.
The investment has been committed to fuel geographic expansion, grow capabilities in key areas including digital marketing and CRM, and augment professional services with product-based solutions. The investment will also support future strategic acquisitions.
“We were attracted to Rightpoint’s unique culture, solid growth trajectory, interconnected, market-relevant services, and strong leadership team,” said Adam Godfrey and Justin Wender, Stella Point’s co-founders. They added, “We look forward to working with the team in the coming years to continue to build upon their tremendous platform.”
Ross Freedman and Brad Schneider, the Company’s co-founders, commented, “We are absolutely thrilled with the results FocalPoint has delivered. FocalPoint not only engineered a seamless process, but intimately understood our business enabling them to provide strategic guidance that was critical in helping us to evaluate our options and find the right partner for our next stage of growth.”
“The explosive growth of cloud-based tools combined with an increasingly mobile customer has introduced a new set of challenges for today’s global enterprises,” noted Muizz Kheraj, leader of FocalPoint’s Technology practice. “This transaction confirms our belief that technology consulting firms that build deep vertical expertise that enable them to address these new challenges will be increasingly attractive M&A candidates in the coming years.”
Regarding the transaction, Nishen Radia, Managing Partner at FocalPoint, commented, “We are thrilled to announce this closing. Brad and Ross have built a wonderful business, supported by an outstanding management team, and we thank them for selecting us to help them through this transaction. This represents another closing for our dedicated practice area in the technology space and represents another success for our Chicago office. We are proud of the process we ran and the partner we found in Stella Point Capital.”
Stella Point Capital is a New York-based private equity firm focused on industrial, consumer, and business services investments. The firm actively seeks investment opportunities throughout North America, working closely with management teams to identify strong market positions and achieve transformational growth. Stella Point’s team has an outstanding track record and its partners have invested over $2 billion of equity capital across more than 35 investments.
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and special situation transactions. With over thirty years of financial advisory and twenty years of operational experience, FocalPoint brings a unique and informed perspective to a diverse range of industry segments, including digital and mobile media, marketing and ad tech, cloud computing infrastructure and apps, tech consulting, and entertainment tech.
With offices in Los Angeles and Chicago, the firm serves middle-market clients throughout the U.S. Since its inception in 2002, FocalPoint has completed approximately $4 billion in total transactions. For more information on FocalPoint Partners, visit focalpointllc.com