Acxiom Corporation (ACXM) recently announced that it has acquired DMS (Direct Marketing Services), a premier provider of direct marketing services in the Middle East-North Africa (MENA) market. 

This acquisition will enable Acxiom to enter the markets of Saudi Arabia and United Arab Emirates. The company plans to service its current global partners who plan to expand in the Middle East as well as regional marketers in that region. 

The new Acxiom MENA organization will serve global and regional clientele from offices in Jeddah and Dubai. The operation will be led by DMS Managing Director Yousef Hamidaddin, who becomes CEO of Acxiom MENA. 

Other terms of the deal were not disclosed. 

Acxiom Corporation integrates data, services and technology to create and deliver customer and information management solutions for companies. Acxiom has a customer base that includes firms in the financial services, insurance, information services, and direct marketing, publishing, retail and telecommunications industries. 

The company plans to expand its footprint and boost top-line. The recent economic slowdown adversely impacted the top-line as most clients delayed or curtailed their marketing spending. 

The biggest concern is the sensitivity of the company’s sales to a slowdown in the economy. Information technology (IT) spending still remains heavily focused on cost savings. While the recent cost cutting measures undertaken by the management are holding up the margins, the declining top-line remains a concern. The outlook in the near term remains challenging as marketing spend continues to be dismal and not expected to revive before 2010. 

Spending by credit card marketers is down significantly as a result of tightening credit standards, a decline in home values, and the mortgage meltdown. Specifically, the volume of existing home sales has declined for the past two years. These factors could negatively affect marketing by financial services institutions for years to come.
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