Zmags Raises $6 Million to Fuel Innovation in Tablet-Based Commerce

North Atlantic Capital Leads Round; Managing Director David Coit Joins the Board

BOSTON--(BUSINESS WIRE)--Zmags, provider of commerce-enabled digital catalogs and publications, today announced that it has completed a $6 million investment led by North Atlantic Capital. The firm’s managing director, David Coit, joins Zmags’ board of directors. Zmags’ previous investors – OpenView Venture Partners and NorthCap Partners – also participated in the round, which will be used to accelerate growth and fuel product innovation to meet the needs of large retail and consumer brands looking to engage with shoppers across mobile, social and online channels. This brings Zmags’ total funding to $18 million.

“As we continue our growth, partners like North Atlantic Capital, who share our strategic vision, are incredibly valuable. This investment is validation of the huge market opportunity for a unique platform like ours.”

Zmags is the only technology provider that enables retailers and brands to build engagement and commerce directly into digital catalog and publication experiences across all channels and devices from a single platform. In Q3 2012, the company signed 74 new accounts, representing a 28 percent increase year over year. Additionally, Zmags continued to deliver bespoke digital shopping experiences for world-class brands such as Musician’s Friend, Harper’s BAZAAR, Kenneth Cole, Express, The Container Store, Serena & Lily and PartyLite.

“Zmags’ technology provides marketers with the ability to create and deploy a deeply engaging online experience,” said Coit. “We were impressed with Zmags’ commitment to helping retailers engage audiences that are shopping and consuming content in new ways, particularly through smartphones and tablet devices. We’re excited to support Zmags as they accelerate their growth and look forward to working with the Zmags leadership team as they continue their penetration of the e-commerce marketplace.”

By the end of this year, the number of U.S. tablet users will reach nearly 70 million, up from 34 million in 2011. Tablet users consume more media than the average smartphone or PC user and they avidly shop and buy products on their devices (source: eMarketer). Zmags brings commerce-enabled catalogs and publications to tablets to effectively engage and appeal to the unique needs and preferences of the mobile shopper.

“The massive adoption of tablets has amplified demand for our offering, as consumers increasingly engage with their favorite retailers and brands on this personal device,” commented Zmags President Scott Bleczinski. “As we continue our growth, partners like North Atlantic Capital, who share our strategic vision, are incredibly valuable. This investment is validation of the huge market opportunity for a unique platform like ours.”

About North Atlantic Capital

North Atlantic Capital is an expansion stage venture capital firm based in Portland, Maine, investing primarily in B2B technology service companies. North Atlantic provides both equity and subordinated debt investment structures to high growth companies with unique technologies that address large market opportunities. Established in 1986, North Atlantic is currently investing its fourth fund, capitalized at $100 million and raised in 2006. Other current investments in the fourth fund include Autotask, ConnectEDU, OnForce, Synacor (NASDAQ:SYNC), Tangoe (NASDAQ:TNGO), Vivisimo, and Voxeo.

About Zmags

Zmags unlocks new revenue opportunities for retailers and marketers by delivering fully-branded, commerce-enabled digital catalogs and publications that are consistent across all consumer touchpoints. The company works with world-class brands including Audi, Harper’s BAZAAR, Serena & Lily, The Container Store, Tesco, PartyLite, Brahmin Leather Goods, Little Tikes Commercial, CVS, Lenovo, Spanx Inc. and Musician’s Friend. The Zmags platform provides an immersive digital environment that invites discovery, deepens customer engagement and allows streamlined purchasing directly from the page.

Zmags is among the fastest growing technology companies in North America, having been named to the 2012 Red Herring Top 100 North America Tech Startups and the 2012 Inc 5000, and is ranked #70 on the Deloitte 2011 Technology Fast 500. Zmags is headquartered in Boston, Mass. with offices in London and Copenhagen. For more information about Zmags, please visit www.zmags.com or follow us on Twitter: @zmags.