New York, NY December 19, 2012 EPAM Systems, Inc. (NYSE: EPAM), a leading provider of complex software engineering solutions and a leader in Central and Eastern European IT service delivery, today announced it has acquired Empathy Lab, a digital strategy and multi-channel experience design firm and a portfolio company of ALC.
The Jordan, Edmiston Group, Inc. (www.jegi.com) of New York, NY, the leading independent investment bank for the media, information, marketing, and technology sectors, represented ALC and Empathy Lab in this transaction and acted as its exclusive financial advisor.
Founded in 2005 by management, and with growth capital and strategic and operational support from ALC, Empathy Lab is a recognized leader in both e-commerce and digital media and entertainment. Empathy Lab most recently launched Horizon Online for Liberty Global, one of the most advanced multi-device TV-Everywhere applications. Empathy Lab has also recently helped re-launch www.RedCross.org, transforming their digital experience using best-of-breed retail strategies and technologies, thereby helping to advance the Red Cross mission by mobilizing the power of their volunteers and the generosity of donors through the digital medium. Empathy Lab’s other clients include AIG, Sentara Health Systems, CHUBB, NBC Universal, TJX, DirecTV, PepBoys, Avon, Philosophy, Comcast and many other leading brands.
Arkadiy Dobkin, CEO and President of EPAM, said, “We are excited about the acquisition of Empathy Lab, which complements our strong capabilities in global delivery of software engineering services with the proven expertise in two important growth areas – development and execution of enterprise-wide commerce initiatives and transformation of media consumption and distribution channels. In addition to strengthening our travel and consumer and business information and media verticals, Empathy Lab brings significant expertise in digital marketing strategy consulting and program management.”
“Empathy Lab matches our investment criteria for strategic fit, accretion and manageable execution risk. As part of our ongoing growth strategy, we will continue to evaluate opportunities to deepen our industry expertise and technology capabilities necessary to deliver complex mission-critical solutions,” continued Mr. Dobkin.
Empathy Lab’s CEO, Kevin Labick, said, “We believe Empathy Lab’s strategy and experience design services, along with our deep understanding of enterprise e-commerce and video platforms, paired with EPAM’s world-class engineering solutions, uniquely positions us to drive unparalleled ROI for Fortune 500 organizations world-wide.”
ALC’s CEO, Donn Rappaport, said, “We are extremely happy with EPAM’s acquisition of Empathy Lab. The goal of our initial investment in Empathy was to forge a bridge between data-driven marketing and digital experience design. We did that, and in the process were able to offer a world class digital capability to ALC clients, as well as leading-edge data marketing expertise to Empathy’s clients. Our investment produced both extraordinary economic and strategic returns. And we are confident that the combination of Empathy Lab and EPAM will produce even greater value to all three organizations and our respective clients in the future.”
About Empathy Lab
Empathy Lab is a leading digital agency focused on delivering breakthrough strategies and experiences that drive business success across all connected devices for Fortune 500 and fast-growth organizations around the world. Empathy Lab’s clients include Liberty Global, the American Red Cross, Avon, Comcast, DirecTV, TJX Companies, NBC Universal, Nintendo, Rogers Communications, Lionsgate, Sony, Chartis/AIG, Chubb, Reed Elsevier and Philosophy. For more information, visit www.empathylab.com.
Founded in 1978, ALC has grown to become the leader in the field of data-driven-marketing. Headquartered in Princeton, New Jersey, the company employs some 200 data marketing professionals in eight locations around the country. It provides both postal and digital data marketing solutions to the leaders in virtually every business category. For more information, visit www.alc.com.
About EPAM Systems
Established in 1993, EPAM Systems, Inc. (NYSE:EPAM) provides software engineering solutions through its leading Central and Eastern European service delivery platform. Headquartered in the United States, EPAM employs over 8,100 IT professionals and serves clients worldwide from its locations in the United States, Canada, UK, Switzerland, Germany, Sweden, Belarus, Hungary, Russia, Ukraine, Kazakhstan, and Poland. EPAM is recognized among the top companies in IAOP’s “The 2012 Global Outsourcing 100,” featuring EPAM in a variety of sub-lists, including “Leaders-Companies in Eastern Europe.” The company is also ranked among the best global service providers on “The 2012 Global Services 100” by Global Services Magazine and Neogroup, which names EPAM “Leaders-Global Product Development” category. For more information, visit www.epam.com.
About The Jordan, Edmiston Group, Inc.
The Jordan, Edmiston Group, Inc. (JEGI) of New York, NY, the leading provider of independent investment banking services for the media, information, marketing and technology sectors, is celebrating its 25th anniversary in 2012. Since 1987, JEGI has completed more than 500 high‐profile M&A transactions for global corporations; middle-market and emerging companies; entrepreneurial owners; and private equity and venture capital firms. For more information, visit www.jegi.com.