News Archive - 03.12.04

LeapFrog Interactive expects growth to jump after reorganization

LeapFrog Interactive Inc., a Louisville agency that offers Internet-related services, has been hopping through the steps of its strategic growth plan.

And company officials plan a "Good to be Green" celebration next week in honor of reaching one of its primary goals, said President and CEO Daniel Knapp.

He explained that LeapFrog Interactive's two divisions, Fastball Internet Services and Visual Savvy, will be folded into the parent company as the final step in LeapFrog Interactive's acquisition of those operations.

"We identified key companies that each had a particular strength that we could take and build into a suite of services," Knapp said. "That is now complete, and we're ready to move forward."

Effective Monday, the Fastball name will remain as only a product line for LeapFrog Interactive's connectivity services, and the Visual Savvy name will be retired, Knapp said.

He expects the transition to have a "minimal" impact because the entities already have integrated their operations.

LeapFrog Interactive, Fastball and Visual Savvy, which employ a total of 23 workers, also have shared office space at 10200 Linn Station Road since September 2002.

Several acquisitions since 2002

LeapFrog Interactive, which is owned by some of its employees and outside investors, was founded in 1999. At that time, the company primarily provided interactive media services such as Web-site development and online marketing, said B. Todd Bright, vice president of marketing for LeapFrog Interactive.

Company officials wanted to add other products that complemented what LeapFrog Interactive already offered, so they began to purchase other organizations that specialized in specific Internet-related services.

Since 2002, LeapFrog Interactive has acquired incuBusiness, Web Source Design and Visual Savvy, which formed the Visual Savvy division. LeapFrog Interactive also bought KA.net Internet Services, which became the Fastball unit.

Out of those businesses, four services emerged: Web-site development, search marketing, Web hosting and connectivity.

Having a range of services available from a single provider is convenient for Thomas Industries Inc., a Louisville-based manufacturing company.

"It works out really well, simply because you start to build a relationship," said Laurie Lyons, vice president of corporate communications for Thomas Industries. "We've worked with (LeapFrog Interactive) for about three years now and continue to go to them for new projects. They know you, and they know your needs."

Alliance formed with Indianapolis firm

Last month, LeapFrog Interactive formed a strategic alliance with ExactTarget, an Indianapolis company that develops e-mail marketing software.

No money exchanged hands in the deal, which will give LeapFrog Interactive access to sophisticated management tools that will help its e-mail marketing clients, Knapp said.

For example, ExactTarget has developed a system that can navigate spam controls, so e-mails containing requested information aren't blocked by filters. "We're able to really leverage what they bring to the table," he said. He added that ExactTarget has infrastructure in place that would have taken LeapFrog Interactive millions of dollars and several years to build.

Knapp said that with the alliance and LeapFrog Interactive's large client base -- 1,500 customers -- the company can provide services for a reasonable cost. Prices range from $19 per month to $449 per month, depending on the services clients choose.

Other avenues for growth

With the restructuring complete, Knapp said, LeapFrog Interactive officials plan to focus on growth initiatives.

LeapFrog Interactive has grown steadily during the past three years, he said. He declined to disclose company revenue figures, but he said revenue grew 125 percent in 2003.

Now, LeapFrog Interactive plans to target its services to other markets. Although officials have no plans to open new offices, they plan to expand the company's client base in other states. Besides the Louisville region, LeapFrog Interactive has clients in Minnesota, Texas, Pennsylvania and Wisconsin.

Another component of company growth is attracting additional employees who can "bring in new ideas," Knapp said.

He added that LeapFrog Interactive plans to hire another two to four employees within six months. "We are planning to see significant growth over the next two years."