Taylor Corp. acquires Minneapolis design and development firm MentorMate

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TMMMinneapolis enterprise technology consulting firm MentorMate has just been acquired by Mankato-based Taylor Corporation — one of the largest privately held diversified companies in the Nation.

The purchase is part of a long-term plan to incorporate mobile strategy, design and technology into Taylor’s portfolio, consisting of 80+ subsidiaries which serve 275 Fortune 500 companies and thousands of small to medium-sized businesses globally. Combined revnue is estimated to be around $1.5 billion, annually.

Taylor’s acquisition of MentorMate follows a string of recent technology forays, notably nabbing RedStamp last August and investing into Sport Ngin’s most recent round.  As part of the deal, Taylor is also buying into MentorMate’s related business interests, including MobCon, Storyworks OnDemand and BevEngine.

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“As we evaluated numerous options to create exceptional value for our customers, employees and owners, and to expand nationally and internationally, Taylor emerged as the premier choice for its ability to create tremendous market access and its industry-specific expertise on a global scale.” says Björn Stansvik (right), CEO of MentorMate.

Taylor Corporation added, “As an award-winning mobile and web strategy, design and development firm, MentorMate will bring transformational technology to our companies and we are excited about the acquisition. Their proven success in delivering simple, beautiful and meaningful mobile and web solutions to small and large businesses will play a key role in helping our customers communicate their messages while maintaining and enhancing their brand.”

MentorMate’s onshore and offshore operations, including management, will remain unchanged and Stansvik will continue as CEO. Transaction terms were not revealed.

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Comments

  • http://twitter.com/casey__allen Casey Allen

    I think this will open the floodgates. Watch for more announcements in the next two years of big, non-software corporations wanting to move more into software and acquiring well established development shops.

    Net net, I think it’s a very positive thing.

    • Keith Gunderson

      Who is it a positive thing for? It doesn’t sound very positive for the employees. They thought they were working for a software agency in uptown now they are working for a former print shop based in Mankato.

      • http://twitter.com/casey__allen Casey Allen

        1. Positive for the founders / leaders of the dev shop. They get to money in their pockets to focus their energy on the most important things to them.

        2. Positive for the employees. Consulting is volatile by nature. Becoming a division of a more stable company changes that dynamic. It’s not like the employees aren’t already getting hit up by headhunters as we speak. They have options.

        3. Positive for the acquiring company, which now has more leverage than ever before.

        • Keith Gunderson

          1. sure it’s positive for the founders, they get the money

          2. skeptical. I worked for a shop like mentor mate. I’m not sure how they are doing comp but what we did was give insurance and everyone got paid an hourly rate, which was pretty good – mine was $85/hr. There were no cap on hours so basically you could make a multiple of how many hours you wanted to work. guys were pulling in $20K+ a month. If you wanted to buy a car cash, ok… just need to bust for 3 months, boom you have a paid off Audi. Then the 3 owners of the company decided to sell the company and make everyone salaried. Only the best salary was about $80K. Most guys got $60-$70K. Not worth it anymore. Most of the good engineers left and all the lazy guys stayed. Plus, eventually half the dudes who stayed on got canned because they didn’t mesh with the new management. This is what I predict will happen.

          • http://twitter.com/casey__allen Casey Allen

            The good news is that it’s a free market. If MM folks are unhappy there are many other firms, startup, or corporations that would be happy to interview them.

  • Rob Weber

    Congratulations to Bjorn, James, and the whole team. They have been a great partner for NativeX and the match with Taylor should be a good one.

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