Epsilon Restructures, Puts Interactive Group Under Parent Firm

Epsilon Inc. is killing its Epsilon Interactive brand and bringing it under its corporate umbrella. The same services will be offered by one of four internal units being set up as part of a restructuring.

“There will no longer be an external brand,” said Epsilon CEO Michael Iaccarino.

The announcement follows the firing Tuesday of Al DiGuido, CEO of Epsilon Interactive. (Direct Newsline, Sept. 27, 2006).

Iaccarino noted that “no more than four people total were let go” Tuesday. Aside from DiGuido, none were involved with clients or with new business development, he added.

The four new business groups are Epsilon Data Services, Epsilon Interactive Services, Epsilon Agency and Direct Services, and Epsilon Strategic Database Services. Previously, Epsilon Interactive ran as a quasi-autonomous unit.

Epsilon Interactive Services, formerly Epsilon Interactive, will be run by Ragy Thomas, Epsilon Interactive’s former chief technology officer. Thomas is the unit’s president, and will coordinate its e-mail and interactive communication offerings.

Bryan Kennedy, currently Epsilon’s COO, will take the reins of the Strategic Database Services group and serve as its president. This group will coordinate the terabyte-sized database for Epsilon’s largest clients, which includes Bank of America and Citibank.

David McRae has been named Epsilon’s Agency and Direct Services group’s president. McRae is charged with expanding the company’s growing portfolio, which includes creative services, print production and direct marketing services.

David Thornbury, currently president and CEO of CPC Associates is expected to lead the Epsilon Data Services group once Epsilon’s previously announced acquisition of CPC Associates is final.

As part of the reorganization, Epsilon is looking to strengthen its offerings in both the e-mail and data space: The company is offering new clients a choice of two e-mail platforms (and is adding a next-generation system early in 2007). It is also planning on leveraging CPC’s new mover data into a suite of data products Iaccarino said will go head-to-head with offerings from Acxiom and InfoUSA.

Epsilon announced earlier this week that it had won BMC as a client.

DiGuido has been one of the most high-profile executives in the e-mail industry since he took over the helm at Bigfoot Interactive in 2001.

Alliance Data Systems acquired Bigfoot Interactive last September for $120 million and renamed it Epsilon Interactive.