(01)EngagementOverview
Strategic buyer acquires Dilate Digital for growth.
Founded in 2014 and based in Australia, Dilate Digital is a performance-led digital marketing agency that specializes in SEO, paid media, and website design and development services. The agency has worked with major clients such as Mazda, Subaru, True North, Benefit Cosmetics, and APM. Dilate Digital provides customized SEO services tailored to each client’s specific needs, focusing on conversion and ROI through web analytics and data. The agency also delivers highly effective paid media strategies across Google, YouTube, Facebook, Instagram, and Spotify, helping clients drive traffic and engagement. With 87% of its revenue coming from long-term retainers, Dilate Digital supports 274 active clients and has a dedicated team of 80+ professionals. The agency has built a strong reputation for delivering impactful digital strategies and aims to continue its growth with the right strategic partner.
(Details)
- Engagement Sell-Side Representation
- Type Full Sale
- Category Digital Product & Web Development, SEO, Paid Media & Lead Generation, Under $10M
- Buyer Type Strategic Acquirer
- Deal Size Under $5M
- Services Valuation & Market Positioning, Buyer Targeting & Outreach, Offer & Negotiation Support, Due Diligence Management, Closing & Transition Support
(02)Inside TheEnterprise
Who Is Dilate Digital?
Dilate Digital is a full-service digital agency that offers a comprehensive suite of services including SEO, paid media management, and website design and development. The agency excels in delivering data-driven SEO strategies designed to boost organic search rankings and enhance visibility. Dilate Digital is also skilled in running high-performing paid media campaigns on platforms such as Google Ads, Meta (Facebook and Instagram), and YouTube. Their expertise in website design and development focuses on user experience, design aesthetics, and conversion optimization. The team’s ability to integrate these services into cohesive strategies has enabled them to deliver strong ROI and measurable success for their clients. Dilate Digital serves clients across various industries, including home services, healthcare, technology, and hospitality.
(03)Founder'sMotive
The Why Behind The Sale
The founders of Dilate Digital are looking for a strategic partner to help expand the agency’s reach and scale operations. With the agency’s strong foundation of systems, processes, and talent, the founders are ready to transition the business to a new chapter of growth. They seek a partner who can help scale their current offerings, expand into new markets, and provide additional resources to support the increasing demand for their services. The founders are excited to assist in the transition and ensure the continued success of the agency.
(04)Founder’s Vision
Criteria for the Perfect Acquisition Fit
The ideal acquisition partner for Dilate Digital would be one that can provide the necessary resources and infrastructure to support the agency’s expansion. The buyer should have a strong understanding of digital marketing, SEO, and paid media, and be capable of scaling these offerings across new markets. The founders are looking for a partner who shares their commitment to excellence, customer service, and company culture. The ideal partner would also have the ability to drive growth through geographic expansion, taking the agency’s proven model beyond its current base.
(05)Setting the Stage
Preparing Dilate Digital for Acquisition
Dilate Digital’s high proportion of recurring revenue (87% retainer-based) and established client base made it an attractive acquisition target. Merge emphasized the agency’s strong financials, high profit margins, and impressive client portfolio, positioning Dilate Digital as a stable and high-growth opportunity. The agency’s skilled team, strong leadership, and reputation for delivering strong ROI were also highlighted. With a solid track record of success and significant growth potential, Dilate Digital was poised for a strategic acquisition to fuel further growth.
(06)Attracting Suitors
Strategic Marketing of Dilate Digital for Acquisition
Merge marketed Dilate Digital as a high-growth, performance-driven digital agency with a strong track record of success in SEO and paid media. By showcasing its large client base, high retention rate, and strong ROI-driven results, Merge attracted several strategic buyers. The agency’s ability to deliver impactful digital strategies for clients in diverse industries made it an appealing acquisition for firms looking to expand their digital marketing capabilities. Dilate Digital’s potential for geographic expansion and service diversification further attracted interest from potential buyers.
(07)Sealing the Deal
Perfect Matchmaking with the Ideal Buyer
The acquisition of Dilate Digital by xDNA Group was a strategic move that benefited both parties. xDNA Group, a strategic buyer looking to enhance its digital marketing capabilities, saw the potential to leverage Dilate Digital’s expertise in SEO, paid media, and web development. With Dilate Digital’s established client relationships, strong recurring revenue, and proven ROI-focused model, xDNA Group was positioned to rapidly expand its geographic presence and digital service offerings. The cultural alignment and complementary strengths between both companies facilitated a seamless transition, setting the stage for continued growth.
(08)Unlocking Synergies
Positive Impacts Post-Transaction
Following the acquisition, Dilate Digital has successfully integrated with its new partner to expand its service offerings and increase revenue. The combined entity has been able to scale operations, enhance client services, and enter new markets. The acquisition has also allowed Dilate Digital to expand its service offerings, including SEO and paid media services, while maintaining its focus on delivering strong ROI for clients. The strategic alignment between the two firms has driven growth and positioned Dilate Digital for long-term success in the digital marketing space.
(09)Finding a New Home
The Merge Difference
Merge played a key role in facilitating the acquisition of Dilate Digital, ensuring that both the founders’ goals and the buyer’s strategic objectives were met. By carefully positioning the agency’s strengths, negotiating favorable terms, and facilitating the acquisition process, Merge helped identify the ideal buyer who was well-positioned to scale Dilate Digital’s operations. The acquisition process was seamless, and Dilate Digital found a new home where it could continue its growth and expand its impact in the digital marketing industry.