Founded in 1988, Will Smith and Alan Gardner saw an opportunity to provide software and services to the catalog industry. As catalog companies opened up retail locations and developed e-commerce websites, Ecometry provided the technology to integrate their sales channels. In early 2001 Mr. Smith and Mr. Gardner hired John Marrah to take on day-to-day responsibilities after growing the company to over $20 million in revenues. In early 2004, the founders decided it was time to convert their ownership in the business into financial assets that would support their retirement.

The Challenge

John Marrah realized there was pent-up demand in retail technology spending as well as a strong competitive drive for retailers to integrate their sales channels. He believed the company needed expansion capital to grow operations in addition to finding the right partner to buy out the founders.

The Solutions

Golden Gate Capital bought 80% of Ecometry in late 2004, providing liquidity to Mr. Smith and Mr. Gardner. Since the investment, Golden Gate has used Ecometry as a platform company and has been targeting other companies for acquisitions. In early 2005, Ecometry purchased Blue Martini with funds provided by Golden Gate. Mr. Marrah continues to lead Ecometry.

Arbor Value Add

• Received three LOIs from potential buyers
• Conducted a non-exclusive 30-day due diligence process
• Negotiated a favorable tax structure for the founders
• Exceeded the valuation expectations of the founders
• Found the right partner to back Mr. Marrah's vision