NOTE: This story has been updated to include comments from Kyle Taylor, founder and CEO of Taylor Media and The Penny Hoarder.
Digital media company Taylor Media Corp., the owner of The Penny Hoarder, has sold to a division of Tampa-based Sykes Enterprises for $102.5 million.
The Penny Hoarder, with content and expertise focused on personal finance, will remain in St. Petersburg, said Kyle Taylor, founder and CEO. All the employees have been offered a job in the new organization, said Taylor, who also is staying on with the company.
There will be no changes in the foreseeable future, Taylor told the St. Pete Catalyst. “Our focus is and continues to be how do we best help consumers navigate the new economy and their personal finances,” he said.
The acquisition marks a significant milestone and validation of hard work from The Penny Hoarder team, Taylor said.
“We’re excited to have found a partner in Sykes who believes in our mission of helping consumers make better financial decisions. The financial services industry is changing rapidly and consumers need an ally in navigating this new economy more than ever. Our partnership will give us a leg up in meeting these challenges while providing more opportunities for our employees and advertisers. We couldn’t be more thrilled to join the team,” Taylor said in a news release.
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Taylor founded The Penny Hoarder in 2010 in St. Petersburg. The sale is indicative of the strength of the local startup ecosystem.
“This definitely speaks to the dynamism, value and opportunities for start-ups in our area. St. Petersburg is a wonderful place to build and grow a business and we look forward to doing business here for a long time,” Taylor said.
The Penny Hoarder had $50 million in revenue on a trailing 12-month basis as of Sept. 30. Sykes (Nasdaq: SYKE) will buy the company in an all-cash deal that’s expected to close before year-end, the news release said.
The Penny Hoarder was acquired by Clearlink, a digital marketing subsidiary of Sykes. Clearlink has a portfolio of digital properties that leverage a mix of journalism and creative storytelling to create mission-focused content, Taylor said in an email announcing the sale.
“Through our Clearlink Digital Media group, we are focused on building a portfolio of digital media assets that help consumers find, buy and use products and services that improve their everyday lives. [The Penny Hoarder] advances this initiative by expanding our portfolio into the very large market of personal finance. The insights, knowledge and expertise that we gain through the TPH transaction will not only enable us to help consumers make informed decisions about financial products and services, it will also help us strengthen the brand and growth of financial services clients all over the world,” said Chuck Sykes, Sykes president and CEO.
The Sykes team approached The Penny Hoarder about the deal and “we both agreed it was a great fit,” Taylor said.
The deal allows The Penny Hoarder to access the SYKES platform, including its global presence, its client base and suite of capabilities, Taylor said.
The Penny Hoarder is a premier customer acquisition partner for its clients, the news release from Skyes said. The deal extends Clearlink’s existing leadership in home-services and insurance into the broader financial services industry, while also adding additional expertise in paid media marketing. Clearlink also will get access to a portfolio of client logos, primarily market disruptors, within credit, investing, banking and insurance, according to the news release.
JEGI | CLARITY, an investment bank for the global media, information, marketing and technology sectors, represented The Penny Hoarder in this transaction. Shumaker, Loop & Kendrick, LLP served as Sykes’ legal advisor.