Digital Insurance Inc., an employee benefits agency in Atlanta,finished 2010 with a recording-breaking $17 million inacquisitions, which strengthens its nationwide growth plan topartner with major insurance agencies that have a large localmarket presence. This year, Digital plans to continue this routeand anticipates a 50 percent growth.

"While Digital has access to capital to grow aggressively, weare being selective about our expansion targets," says MikeSullivan, executive vice president and chief marketing officer.

When looking for potential acquisitions, Digital is searchingfor firms that have a similar focus on the small- and medium-sizebusiness market, a progressive outlook regarding health care reformand share a cultural fit with the organization.

"We bring local agencies a set of proprietary solutions,operational focus and scale, expanded relevance with carriers, anda sophisticated technology platform that enables us to better serveour clients - all essential to future success," Sullivan says. "Byaligning with respected agencies, we are able to localize ourbusiness, gaining relationships and deep local market knowledge thattakes years to otherwise attain."

Digital is pursuing several acquisition models during 2011,including agency, property and casualty, and block acquisitions aswell as partnerships with a shared-commission agreement.

"There is a growing acknowledgement among agencies that ourbusiness is at an inflexion point and a go-it-alone strategy willchallenge many small firms downstream," says Sullivan. "We havebeen able to thrive as a company by being different and embracingchange. Our goal now is to bring capital and capability to the SMBmarket in a way that helps transform the marketplace."

In 2011, Digital is eyeing 12 states for potential growth, whichinclude Arizona, California, Connecticut, Florida, Illinois,Maryland, Massachusetts, New York, New Jersey, Ohio, Pennsylvaniaand Texas.