U.S. private equity firm Lovell Minnick Partners has made an undisclosed investment in Engage People Inc, a Concord, Ontario-based solutions provider to the loyalty and incentive industry. The proceeds of the investment will be used to support the global growth of Engage, which will continue to be majority-owned and operated by its current management team, led by CEO Jonathan Silver. With the deal, Lovell Minnick President Steven Pierson and Partner Spencer Hoffman will join the company’s board. Engage is the first Canadian investment of Lovell Minnick, which specializes in financial services and related business services.
Photo: Steven Pierson, president and partner of Lovell Minnick Partners.
Lovell Minnick Partners Announces Capital Investment In Engage People Inc., A Solutions Provider For The Loyalty & Incentive Industry
TORONTO – January 17, 2017– Engage People, Inc. (“Engage”), a leading global solutions provider for the loyalty and incentive industry, today announced that it has received a significant investment from Lovell Minnick Partners, a private equity firm specializing in financial and related business services companies. The investment will support plans for growth at Engage, which will continue to be majority owned and operated by the current management team. Terms of the private investment were not disclosed.
Engage products include Podium, a proprietary SaaS-based platform that manages end-to-end loyalty rewards, employee recognition, sales and sales channel incentive programs on a global basis. Engage is changing the industry with its highly differentiated solutions, including its patented Local Redemption Globally solution that enables participants in programs to redeem and earn loyalty rewards on most ecommerce sites anywhere in the world. These innovative solutions, coupled with traditional fulfillment services and data analytics, solve major challenges in the $250 billion loyalty and incentive industry.
The global loyalty market currently consists of over 10,000 loyalty programs with 7.6 billion program members. Engage offers a tangible, high value proposition to clients and their loyalty and incentive members, which has helped fuel the company’s rapid growth. Engage’s blue chip clients, which include financial institutions, hotels, airlines, telecommunications companies and others, typically utilize a mix of products and services to drive consumer, channel and employee engagement.
“We have more than doubled in size every year for the past five years both in terms of revenue and client base. As our rapid growth continues and we expand our offerings to clients worldwide, the support and capital investment from Lovell Minnick will help us scale to meet increased demand for our solutions across different industries,” said Jonathan Silver, Chief Executive Officer of Engage. “We look forward to a successful partnership that will enable us to broaden the range of solutions we offer as we continue our journey to becoming the market leader in the loyalty and incentive industry.”
“We are thrilled to support Engage at this key inflection point in its development. The company’s proprietary, technology-driven solutions, combined with its history of meeting the increasingly diverse client needs across industries and geographies, positions it well to address the changing demands of the loyalty and incentive marketplace,” said Spencer Hoffman, Partner at Lovell Minnick. “We look forward to using our experience working with dynamic, growth companies to assist the leadership team in its aggressive expansion efforts.”
”This is our first investment in Canada, a market in which we see a number of exciting investment opportunities. As an investor with national reach and relationships, and as we’ve done with many of our portfolio companies, we hope to identify and introduce both new clients and strategic acquisitions for Engage,” said Steven C. Pierson, President and Partner at Lovell Minnick. As part of the transaction, Hoffman and Pierson will join the Engage Board of Directors. Raymond James provided financial advisory services, and Miller Thompson acted as legal advisor to Engage People. Morgan, Lewis & Bockius, LLP acted as legal advisor to Lovell Minnick Partners.
About Engage People, Inc.
Engage is an innovative, market-leading solutions provider for the global loyalty and incentive industry. Engage products include its proprietary SaaS-based platform that manages end to end loyalty rewards, employee recognition, sales and sales channel incentive programs on a global basis. Headquartered in Toronto, the company has offices and employees in London, Rome, New York, Orlando and Sydney. For more information, please visit www.engagepeople.com.
Photo of Steve Pierson courtesy of Lovell Minnick Partners