H.I.G. Capital News
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H.I.G. Capital Completes the Sale of Digital Room
NEW YORK – December 22, 2021 – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with over $45 billion of equity capital under management, is pleased to announce the sale of its portfolio company Digital Room, LLC (“Digital Room” or the “Company”) to an affiliate of Sycamore Partners. Terms of the transaction were not disclosed.
Headquartered in Sherman Oaks, CA, Digital Room is a leading e-commerce provider of customized marketing products to small and medium sized businesses. The Company reaches its diversified customer base through a series of its own websites and fulfills the products through an extensive network of facilities across North America.
H.I.G. acquired Digital Room in December 2017 in partnership with the Company’s senior management. Through a combination of significant organic growth as well as highly strategic tuck-in acquisitions, Digital Room doubled revenue and profitability during H.I.G.’s ownership period, generating an outstanding return for its investors.
Mike Turner, CEO of Digital Room, added: “H.I.G. has been an outstanding partner to Digital Room since their initial investment in 2017. In addition to supporting our acquisitions efforts, H.I.G. provided us with the freedom and flexibility to grow the business organically and served as a value-added advisor to our senior leadership team. As a result of our work together with H.I.G., Digital Room is larger, stronger, and more diversified today than it was in 2017. We now offer a more comprehensive set of value-added solutions to our small and medium sized business customers.”
Rahul Vinnakota, Managing Director at H.I.G., said: “We are extremely pleased with the results of our investment in Digital Room and are proud that H.I.G. played a role in building a solid foundation upon which the Company will continue to profitably grow. Digital Room is an exceptional organization with outstanding leadership and we wish the Company the best in the next chapter.”
Matt Hankins, Managing Director at H.I.G., further commented, “We have been thrilled with the partnership with Digital Room management and look forward to the Company’s continued success.”
Baird and Harris Williams were the financial advisors to Digital Room, and Ropes & Gray LLP represented H.I.G. Capital and Digital Room as legal counsel.
About Digital Room
Digital Room offers a broad array of marketing products for small and medium sized businesses through a portfolio of uniquely branded eCommerce websites, including Uprinting.com, Signs.com logosportswear.com, packola.com, eSigns.com, PrintPlace.com, NextDayFlyers.com, PrintRunner.com, and 48HourPrint.com. Digital Room’s focus on providing an outstanding user experience and excellent products has built loyal repeat customers from its base of small business owners, design professionals and marketers.
About H.I.G. Capital
H.I.G. is a leading global alternative assets investment firm with over $45 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach. Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.