Mergers and Acquisitions, IT management, Content

West Monroe Buys Carbon Five; Seeks Additional Digital Services Acquisitions


West Monroe has acquired Carbon Five, a national product management, digital design and software engineering firm as it seeks to expand its end-to-end digital services strategy, the companies said. Financial terms of the deal were not disclosed.

This is technology M&A deal number 753 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

West Monroe Business Strategy

Tom Bolger, chief strategy officer, West Monroe
Tom Bolger, chief strategy officer, West Monroe

The deal comes on the heels of West Monroe acquiring Verys, a 200-person product development firm, in September 2021.

West Monroe is striving to combine expertise in technology, design and industry-led business strategy to help clients become digital leaders, the company said. More acquisitions are planned to execute against the strategy.

Carbon Five, founded in 2000, has offices and talent in four major markets: Los Angeles, San Francisco, New York and Chattanooga. The company has nearly 100 designers, product managers and software engineers that build digital products and support clients' product management and development capabilities.

Co-founders Mike Wynholds and Don Thompson will continue to run Carbon Five as a West Monroe-owned company until integration, which is expected to be complete in 2022.

“We are excited to welcome Carbon Five, a likeminded organization with strong talent and integrated product capabilities. When paired up with Verys’s scale and West Monroe’s core expertise in strategy, industry, and tech, we are able to drive long-lasting value and partnership to our clients,” said Tom Bolger, chief strategy officer at West Monroe.

West Monroe's 'Be Digital' Acquisition Strategy

In October 2021, backed by a new investment from MSD, West Monroe said it would actively pursue digital consultancy acquisitions, ChannelE2E reported. MSD Partners was founded in 2009 by the partners of MSD Capital — the family investment office for Michael Dell, founder & CEO of Dell Technologies.

Even before the infusion of capital from MSD, West Monroe in September 2021 acquired Verys, a Santa Ana, Calif.-based product engineering services firm. In fact, West Monroe had earmarked roughly $250 million on various digital initiatives as part of a larger Be Digital plan. Among the goals: Reach a $1 billion valuation by 2025. The company did not disclose its current valuation.