By Chibuike Oguh

NEW YORK (Reuters) – Private equity firm BC Partners said on Thursday it has agreed to acquire a majority stake in Madison Logic, a provider of business-to-business digital marketing services.

Terms of the deal were not disclosed, but a person familiar with the matter told Reuters the transaction valued Madison Logic at about $750 million.

BC Partners is acquiring Madison Logic from Clarion Capital Partners, a New York-based private equity firm that had acquired the company in 2016.

Clarion as well as Madison Logic executives including chief executive Tom O’Regan and co-founders Vin Turk and Erik Matlick will remain minority shareholders in the company following the BC Partners acquisition.

Madison Logic helps businesses track and target enterprise customers with digital marketing to generate sales. The New York-based company was founded in 2005 and has about 250 customers, including Amazon, Google owner Alphabet Inc, Adobe Inc, Microsoft Inc and Facebook owner Meta Platforms Inc.

Spending on business-to-business digital marketing constitutes a small but growing part of the nearly $300 billion U.S. digital advertising market.

Madison Logic competes with TechTarget Inc for market share in the U.S. business-to-business advertising sector, which is expected to grow by 15% to $16.5 billion in 2023, according to market research firm eMarketer.

“Within digital marketing, Madison Logic is focused on the business-to-business segment, which is typically less affected than the business-to-customer segment in a recession,” BC Partners chairman Raymond Svider said in an interview.

“We believe Madison Logic has room for continued organic growth; they can continue to expand beyond existing technology clients into other verticals such as healthcare and industrials; and there could potentially be acquisitions,” Svider added.

Based in London, BC Partners manages more than $41 billion in assets spread across healthcare, technology, financial services and industrials in Europe and North America.

(Reporting by Chibuike Oguh in New York; Editing by Josie Kao)