Digital services firm West Monroe, backed by private equity firm MSD Partners, has acquired change management consultancy 71 & Change. Financial terms of the deal were not disclosed.
This is technology M&A deal number 547 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
West Monroe, founded in 2002, is based in Chicago, Illinois. The company has 2,098 employees listed on LinkedIn. West Monroe’s areas of expertise include operations, marketing, sales & service, digital & technology, cloud advisory, systems & platforms, analytics & AI, HR advisory and more.
71 & Change, founded in 2016, is based in Portland, Oregon with an additional office in Seattle. The company has 48 employees listed on LinkedIn. 71 & Change’s areas of expertise include change management, change analytics and people-centered project management (PCPM).
The acquisition of 71 & Change expands West Monroe’s organizational change management services by adding leadership depth, breadth and scale, the company said. The deal also nearly doubles West Monroe’s organizational change management team nationally, according to the company.
The deal comes at a time when the organization and change management consulting procurement category is also projected to grow at a CAGR of 24.6% from 2020 to 2024, West Monroe pointed out.
West Monroe Acquires 71 & Change: Growing Talent
Tom Bolger, CSO, West Monroe
Tom Bolger, CSO, West Monroe, commented:
“We are continuously evaluating opportunities to better serve our clients on their digital journeys, and 71 & Change is a great fit by adding complementary services and much-needed scale. In fact, we’ve experienced 71 & Change’s advisory and execution services firsthand as we partnered together on our own recent acquisitions. I am excited to continue working with their talented team, but this time as a part of West Monroe.”
Mike Hughes, managing partner and leader of the operations excellence practice, West Monroe, said:
“We are excited to welcome the 71 & Change team to West Monroe, an organization well-recognized in the market with deep expertise in change management approaches and technologies. With our combined team and experience, we will be able to drive even more successful organizational transformations, creating even greater value for our clients.”
West Monroe’s Growth Plans
West Monroe received an investment from MSD Partners in October 2021 to help fuel its growth, but even before that the company was working to grow inorganically, acquiring Verys, a Santa Ana, California-based product engineering services firm, in September 202 1.
In fact, West Monroe has 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.
Since then, the company also acquired Carbon Five, a national product management, digital design and software engineering firm.