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Owner of Staples Promotional Products Acquires Digital Room

Digital Room is an e-commerce provider of customized marketing products that include an array of logoed apparel, bags, drinkware and much more.

Sycamore Partners is expanding its reach in the print and promotional products industry.

The New York-based private equity firm, which has raised about $10 billion in aggregate committed capital since its 2011 founding, already owns Staples – the parent company of Staples Promotional Products (asi/120061), which is the second-largest distributor in the promo products market.

M&A on white blocks

Now Sycamore has acquired Digital Room, a Sherman Oaks, CA-based e-commerce provider of customized marketing products that include an array of logoed apparel, bags, flyers, banners, drinkware, various hard goods and more.

Financial terms of the deal were not released. Sycamore said that Digital Room operates a vertically integrated national production network capable of reaching 90% of the U.S. population with two-day ground delivery.

The California-headquartered company connects with customers through e-commerce print and promo sites that include Uprinting.com, Signs.com, logosportswear.com, packola.com, eSigns.com, PrintPlace.com, NextDayFlyers.com, PrintRunner.com, and 48HourPrint.com.

“Digital Room has an impressive track record serving the marketing needs of small and medium-sized businesses,” said Stefan Kaluzny, managing director of Sycamore Partners. “We believe the company is well positioned for its next phase of growth, and we look forward to partnering with the Digital Room team as they continue executing on their existing strategy.”

“We are excited to partner with Sycamore as we take the next step in our growth,” said Michael Turner, CEO of Digital Room. “With Sycamore’s support and expertise, we can expand our market leadership and continue to deliver exceptional products and services for our customers.”