Merger and acquisition activity is continuing to accelerate in the promotional products industry.

The latest major deal sees Fairfax, VA-based Custom Ink acquire Swag.com (asi/287954), a New York-based ecommerce-driven distributor that operates an end-to-end functional and easy-to-navigate promo shopping website.

Financial terms of the deal were not released.

Custom Ink believes the acquisition will help it to significantly expand sales in the gifting-as-a-service market, particularly as that category grows with organizations of all sizes keen to build connections with remote teams, customers and partners in the age of work-from-home and Zoom meetings. 

“With Swag.com, we’ll help organizers and organizations meet the really important need of sustaining a sense of connection and community no matter where people are located,” said Marc Katz, cofounder and CEO of Custom Ink. “Nothing creates the feeling of pride and connection like custom gear, and Swag.com has set a new standard for easy and intuitive gifting of high-quality swag. There is amazing alignment of values between our companies, and we’re excited to build and extend our platforms together.”

Swag.com CEO Jeremy Parker and COO Josh Orbach will continue to lead the company.

The two college friends from Boston University founded Swag.com in 2016, ultimately creating a platform that combines quality products, streamlined online design and ordering, turnkey storage and distribution, and meticulous attention to customer experience. The company has fast emerged as a disruptor in the promo products space, and is set to double revenue in 2021 to north of $30 million.

“During the pandemic, people couldn’t gather in the office or connect at sales meetings or trade shows,” said Parker. “With many employees and partners feeling out of touch, our new model for swag distribution helped companies maintain their identity and cohesion.” 

Michele Bell, vice president of ASI’s editorial, education and special events team, interviews Swag.com’s founders about their innovative platform.

In 2021, Inc. magazine ranked Swag.com at 368 on its list of the 5,000 fastest-growing companies in the U.S. The company’s 5,000 customers include corporate giants like Amazon, Coca-Cola, Facebook, Google, McDonald’s, Netflix, Spotify, Starbucks, TikTok, and Walmart – a list the distributorship aims to expand through empowering organizations to use quality branded merchandise to help build meaningful bonds.

“In an increasing virtual world, physical items still have a profound impact on connecting people, building relationships, and showing generosity,” said Orbach. “Swag.com and Custom Ink were both built on the power of using swag to bring people together, and we believe this combination will position us for long-term leadership in our category.” 

Founded in 2000, Custom Ink has also leveraged ecommerce to become a disruptor in the merch space. Anyone can visit the company’s site and use an online design tool to create customized/personalized graphics and messaging on products that range from T-shirts, hooded sweatshirts and other apparel, to drinkware, bags, tech accessories and more.

While headquartered in Fairfax, VA, Custom Ink has other operating facilities in Charlottesville, VA; Reno, NV; Dallas, TX; and Los Angeles, CA. The company also offers Custom Ink Fundraising, a platform to raise money and awareness for charities and personal causes through the sale of custom T-shirts.

The Custom Ink/Swag.com deal comes as mergers and acquisitions increase again in promo following a pandemic-induced lull. Last week saw another significant deal, with S&S Activewear (asi/84358), the third largest supplier in the industry, signing a deal to acquire TSC Apparel (asi/90518), promo’s 14^th biggest supplier. Custom Ink reportedly has revenue in the range of $400 million.