Red Letter acquires Element 74 after chance meeting

A web development and software solutions company in Cape Girardeau has joined forces with a full-service marketing and communications agency in a move both businesses say will benefit their clients as well as their employees.

Red Letter Communications announced last week it acquired Element 74 effective Jan. 1. The transaction was announced on Red Letter's website and in letters to each company's respective clients.

Acquisition discussions began about a year ago when Element 74 president Chris Edmonds and Red Letter founder and CEO Jim Riley happened to strike up a conversation at a Cape Girardeau Area Chamber of Commerce First Friday Coffee.

"I think it was just an off-the-cuff remark, like, 'Hey, we should talk about how we could potentially work together,'" Edmonds said, adding, "it was odd" because he rarely saw Riley at the monthly chamber breakfast programs.

"I think it was the first time I had been at a First Friday Coffee in about three years, but I'm a believer in synchronicity," Riley said of the initial discussion, which, a year later, led to the blending of both businesses.

Red Letter Communications digital team assistant Kelly Hahs, foreground, is seen in one of the agency's team work areas Wednesday at 1610 N Kingshighway in Cape Girardeau.Jay Wolz

According to Riley, the addition of Element 74's web development savvy and digital expertise, combined with Red Letter's strategic marketing and multiplatform messaging programs, will result in a "pretty powerful and potent combination" of services.

As part of the acquisition agreement, Edmonds has joined Riley in Red Letter's four-member ownership team and will continue in his role as president of the Element 74 brand. Other members of Red Letter's ownership include agency president Bruce Robert and general manager Trent Summers.

"I have known Jim and the Red Letter team my entire 20-year career as friends, associates, mentors and competitors," Edmonds said. "I have a tremendous respect for the organization. I am equally excited about our teams coming together and enthusiastic about what this will mean in terms of deepening resources and enhancing our ability to develop solutions for our clients."

Riley agreed, adding that by combining Red Letter's 60 employees with Element 74's staff of about 20, it will create a "collaborative synergy" enhancing the skills and abilities of the combined companies' employees.

"Basically, what we're doing by bringing them together is we're multiplying their talents," Edmonds said.

Catrina Hawkins, a production assistant at Red Letter Communications, designs a digital ad for one of the company's clients Wednesday at 1610 N. Kingshighway in Cape Girardeau.Jay Wolz

Riley agreed and said one of the keys to Red Letter's success rests with the company's employees.

"Everybody at Red Letter and everyone at Element 74 can probably do 10 or 20 things better than I can," he said. "Our business rests on mutual respect and a recognition that because we're all different, that's a very good thing. Diversity is the magic."

"This move brings together some significant firepower in terms of talent, strategy, content creation, digital and traditional marketing, web services and software development," Robert said. "This is part of our mission to relentlessly serve our clients while providing them effective ways to grow the connections they have with their customers."

Element 74 is currently located at 113 S. Silver Springs Road in what was once the Kindercare day care facility, but by March 1 it will relocate to 1823 Rust Ave. The new location will facilitate E74's expansion into digital marketing and will include a "content lab."

The content lab, Riley explained, will be a "new kind of studio" that will encompass video production as well as photography, digital content production, social media creation and other services designed to add customer value.

Red Letter Communications director of video services Drew Wright, foreground, checks a digital file in the agency's video production area while several video production members on the other side of the window collaborate on an upcoming advertising campaign Wednesday at 1610 N. Kingshighway in Cape Girardeau.Jay Wolz

"It's going to be a cool space," Edmonds said.

The addition of the Rust Avenue location will roughly double Red Letter's office space to approximately 16,000 square feet when added to the company's existing work space on two floors of the Regent's Parc building at 1610 N. Kingshighway.

Red Letter Communications was founded in 1981 and focuses on marketing communications strategy and programs for retail, corporate and business-to-business clients on a local, regional and nationwide basis.

Edmonds created Element 74 about 20 years ago in his home. Over the past two decades, the company has created custom software, web solutions, digital marketing and website content for hundreds of clients throughout the nation and abroad.

Moving forward, Riley said "staying relevant" will be the key to the combined company's success.

"We're absolutely committed to continuing to get better and to being relevant," he said. "You have to make sure your customers understand that you're the kind of company that will not go to sleep at night until it's done and done right. That's just how we are. We're relentless about that."

Edmonds agreed. "You've got to ask yourself, 'How does my company stay relevant for the next 20 years? How do you keep the ship sailing?' I think the combination of these two organizations is going to make that possible," he said.

Edmonds went on to say Red Letter's acquisition of his company happened at a perfect time for him.

"Honestly, it was an answer to a prayer because I prayed for a long-term succession plan for the company and this was it," he said.

"Chris really didn't think the Lord would send an angel that looked like me, though," Riley said with a laugh.

"I guess I should be careful what a pray for!" Edmonds answered with a grin.

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