Maritz acquires CDS from Freeman

Event-management giant Maritz has acquired Convention Data Services from Freeman. The companies today disclosed the sale of the registration, on-site and lead-generation provider, after finalising the deal on 1 July. The Bourne, Massachusetts-based CDS has been supporting association events and trade shows with expertise and proprietary technology for more than 35 years.

For St. Louis-based Maritz, the deal is its biggest since the 2012 acquisition of Experient, which laid the foundation for the company's trade show and association business. “By adding this new portfolio of clients from CDS, Maritz significantly increases our share of the market and positions us well for the future,” said Maritz president and CEO David Peckinpaugh. “This acquisition exemplifies our commitment to supporting association and trade show events through this era of shifting attendee expectations and behaviours.”

CDS was acquired by Freeman in October 2019, just five months before the Covid pandemic shut down the convention business. It was never entirely integrated into the company as a result, and had remained "Convention Data Services, a Freeman Company" until last week's sale. By contrast, Maritz has a "realistic long-term integration timeline" of one to three years, according to Peckinpaugh, during which time the CDS brand will go away.

While it's big news for both companies, Peckinpaugh wants to reassure both Maritz and CDS clients that it's business as usual for the time being and that the patient timeline should ensure that "no one should feel the need to freak out."

The Maritz growth strategy

The CDS acquisition brings with it the expertise of its seasoned employees, proprietary technology and a significant client base. For instance, the company recently inked a deal to be the official registration, integrations and lead-management services provider for Informa Markets' B2B events. For Maritz, the appeal of CDS was largely about the expertise and the relationships the company had developed with its clients.

"Historically speaking, the vast majority of clients have selected Maritz and have selected CDS because of the teams and the people they work with," Peckinpaugh noted. "The technology and tools that we use are obviously part of the equation and the enhancements. But at the end of the day, it comes down to the teams we have in place. And so we're not doing anything to disrupt that. Our number-one focus is on the clients, and we won't do anything to disturb the exceptional service and teams they're accustomed to working with."

Peckinpaugh underscored this as strictly a growth move, without plans to streamline teams through any reductions. "Their people are busy and their plates are full with the events they have, and it's the same with the Maritz people. Will there be some efficiencies down the road? Most likely, but it's not going to be people-driven; it's really about process and efficiency and making good decisions around tools like technology."

At this point, bringing in CDS only increases the number of tech options for all clients, Peckinpaugh added.

Expecting a good match

The fact that CDS was still running independently under Freeman made it simpler to divest. "We are confident Maritz is the right home for CDS and its talented team,” said Paul Fletcher, Freeman's COO of audiovisual and event technology, in a statement.

Peckinpaugh described the pairing of Maritz and CDS as a match made in heaven. "The cultural fit is spectacular; the alignment of products and services is ideal. And this allows Freeman to go off and invest in the areas they want to focus on. The opportune time for Freeman and for us to do this was right now."

Source: Northstar Meetings Group