InnerWorkings Acquires DB Studios, Lowers Full-year Revenue Forecast
Chicago-based InnerWorkings, a leading global marketing supply chain company, this week announced the acquisition of DB Studios as well as an adjusted full-year forecast.
DB Studios, a California-based distributor of permanent POP displays and retail fixtures, was acquired by InnerWorkings in late March 2013. The company's clients include major retail and consumer package goods brands. The acquisition provides InnerWorkings with creative, design, engineering, and prototyping capabilities, which are critical in the permanent display world. DB Studios is expected to contribute approximately $20 million of revenue for the balance of 2013.
InnerWorkings also announced that full year 2013 revenue guidance has been adjusted to $900 to $930 million, down from the $930 to $960 million previously estimated by the company. The expected drop in earnings is due to a change in control at a large retail client, resulting in the decision to redirect a significant portion of work to a provider with an existing business relationship with the client's new management team. The loss of revenue will be partially offset by the DB Studios acquisition, and still represents a 13 to 17 percent increase over the prior year.
"While we are disappointed by the revenue loss from a major client, we understand this risk presents itself when a client undergoes a change in control," said Eric Belcher, CEO of InnerWorkings. "We look forward to continuing to deliver excellent service and savings for them, albeit in a new reduced role. Importantly, our new business pipeline remains strong and we fully expect to achieve our new business growth targets for the year."
For more information, visit www.inwk.com.