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Infinum Acquires American Digital Agency ExpandTheRoom

<p>Nikola Kapraljević</p>
Nikola Kapraljević / Image by: foto

One of the largest Croatian IT companies, Infinum, has acquired the creative digital agency based in New York, ExpandTheRoom (ETR). The domestic award-winning technology collective, whose clients include Philips, KPMG, Porsche, and Warner Brothers, is expanding its reach in the United States with this move to respond to the growing demand in the field of strategic digital transformation.

Infinum currently operates from eight offices in Europe and the USA, employing around 400 experts in the design and development of digital products and continuously collaborates with global brands to create innovative solutions for various sectors including automotive, finance, healthcare, and retail.

– The main motivation for the acquisition is to establish a stronger presence in the United States. The existing office in New York is already achieving excellent results in the largest market for digital services in the world, and with the reinforcements from ETR, we will be able to elevate our business to a higher level. We are proud to welcome an experienced and skilled team that has a strong client base including Citibank, ESPN, Reuters, Business Insider, and Honda. I believe that in this way we will provide even better service to our existing clients, and with a larger team in the USA, we will find it easier to reach new clients – said Nikola Kapraljević, CEO of Infinum.

Infinum and ETR, besides experience and complementary company culture, share a similar beginning. The American agency, which particularly stands out for its expertise in user experience and analytical approach, was founded by two friends, James Cole (CEO) and Todd Doyle (Creative Director), and over the years has assembled a team of 24 experts who will now be able to take on even more demanding projects and larger clients in collaboration with Infinum.

– The demand for top-notch user experience is at its peak. With the introduction of technologies such as artificial intelligence, the need for digital transformation will only increase further. We are entering a new era and see firsthand that brands are seeking additional expertise to adapt to new circumstances. Given these trends, Infinum and ETR are strategically joining forces to better guide and direct global clients through the challenges they will face in the future – comments James Cole, CEO of ExpandTheRoom.

Experts from the American digital agency will further enhance Infinum’s competencies. Together, they will provide clients with additional value based on strategic design and modern technologies, including innovations in artificial intelligence, user experience, the Internet of Things, and cybersecurity.

Infinum’s acquisition is financed through a combination of its own funds and a loan from the EBRD. The approved credit line amounts to 10.8 million euros, and the funds will be used for this and future strategic acquisitions. This represents a significant new chapter in the company’s growth and an even stronger approach to the largest global market for digital services.

With this acquisition, Infinum’s consolidated revenues are growing by just over 20 percent compared to the previous year and will amount to around 29 million euros in 2023.

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