Founded in 2008, WillowTree is a digital product consultancy that provides end-to-end strategy, design, full-stack development, and growth marketing services to the world’s leading brands. WillowTree’s client roster includes Fortune 500 companies across key verticals including telecommunications and media, healthcare and life sciences, financial services, and technology and software.
Transaction Highlights
Insignia had an active investment thesis focused on digital transformation services, and through an introduction to WillowTree’s founders, we quickly recognized the company’s differentiated market position, exceptional culture, and reputation as a trusted partner to many of the world’s leading brands.
WillowTree’s founders were seeking a partner with experience scaling founder-led businesses while preserving the culture and entrepreneurial spirit that had driven the company’s success. Together, we aligned on a shared vision to expand WillowTree’s capabilities, invest in talent, build a scalable go-to-market engine, and pursue strategic acquisitions to create a leading digital transformation platform.
Insignia invested in WillowTree in 2018, and the founders rolled a significant portion of their equity into the partnership while remaining in executive leadership roles – a reflection of the strong alignment and shared commitment that defined our partnership from the outset.
Investment Thesis
- Differentiated challenger to the top global IT consulting firms, supported by best-in-class customer and employee satisfaction metrics, including an NPS of 77% (vs. competitor average of 25%), and a 4.8/5.0 Glassdoor rating with annual employee churn less than half its peers
- Well positioned to benefit from accelerating digital transformation spending, as enterprises increasingly invested in mobile applications, customer experience, and technology-enabled engagement
- Clear opportunity to build and scale an outbound sales function, with almost all new business leads generated through inbound channels
- Attractive platform for strategic acquisitions in a highly fragmented market, creating opportunities to broaden capabilities, expand geographic reach, and accelerate growth
Value Creation
Over the course of our four-year partnership, Insignia worked alongside WillowTree’s founders and management team to execute against the strategic priorities identified at investment. Through investments in talent, operational scale, sales & marketing, and three strategic acquisitions, WillowTree evolved into a leading digital transformation platform serving many of the world’s most recognized brands. By the time of our exit, the company had expanded its global footprint, diversified its service offering, and strengthened its position as a category leader.
Enhance Talent
- Scaled the team 4.5x while maintaining an industry-leading 4.6-star Glassdoor rating
- Maintained industry-leading employee retention and engagement through continued investments in culture, leadership development, and career progression
- Recruited two high-profile independent board members – former A.T. Kearney Chairman and former T-Mobile Chief Digital Officer – to strengthen strategic oversight
Improve Operations
- Enhanced WillowTree’s agile, test-and-learn delivery methodology to accelerate product development cycles and improve client outcomes
- Implemented a globally distributed delivery model to increase scalability, expand service capacity, and enhance access to specialized talent
- Augmented delivery capabilities through strategic acquisitions that broadened WillowTree’s nearshore and offshore talent footprint, improving delivery economics while maintaining service quality
Expand Capabilities
- Expanded into adjacent capabilities both organically and through strategic acquisitions, transforming WillowTree from a leading mobile app development agency into a full-service digital product consultancy
- Established WillowTree as a trusted digital transformation partner to many of the world’s leading brands, supporting mission-critical initiatives across the digital product lifecycle
- Leveraged a proven land-and-expand model to deepen client relationships, increase share of wallet, and drive industry-leading net revenue retention
Invest in Sales & Marketing
- Built and scaled WillowTree’s outbound sales & marketing function
- Established a repeatable growth engine through industry-leading thought leadership, highly effective field marketing, and an expanding network of strategic technology partnerships
- Diversified the client base across telecom, healthcare, financial services, and technology verticals
Expand Capacity
- Expanded geographic reach and delivery capacity through organic growth and strategic M&A, growing from two U.S. studios with 100% onshore delivery model to thirteen locations across three continents
- Implemented a branch-based operating model with cross-functional ~150-person teams organized by geography and expertise to support growth while preserving WillowTree’s collaborative culture and industry-leading employee experience
Strategic M&A
Developed and executed a targeted M&A strategy alongside management, sourcing and completing three proprietary add-on acquisitions that expanded WillowTree’s capabilities, talent base, and geographic footprint
Three acquisitions that broadened capability and reach
Dynamit
2019
Broadened industry expertise and enhanced CMS and engineering capabilities
Maark
2021
Strengthened Adobe Cloud and customer experience capabilities
Poatek
2021
Added offshore talent and data science expertise
The team at Insignia were outstanding partners during a critical period of explosive growth, and we are grateful for their insight, support, and commitment to our vision.
Tobias Dengel, CEO of WillowTree
Growth Highlights
4.2x
Revenue Growth
4.5x
Employee Count Growth
3
Strategic Acquisitions
$1.225B
Exit Enterprise Value
The Outcome
Acquired by TELUS International
In 2023, WillowTree was acquired by TELUS International for a total enterprise value of $1.225 billion, capping a four-year partnership that transformed a founder-led studio into a global digital transformation platform.