Two Acquisitions for S4

Sir Martin Sorrell's S4Capital has announced two 'combinations', expanding both its MediaMonks content practice, with the addition of independent marketing firm Decoded Advertising; and its MightyHive data and digital media practice with the acquisition of San Francisco firm Metric Theory.

The deals add a combined total of just under 350 people to the group's existing 3,400, and gross profit of c.$70m (up 50%) in 2020. The undisclosed price will be paid half in cash and half by the issue of S4Capital Ordinary Shares.

The group says that with 'much of the uncertainty ...at last... removed from the Brexit process', it will push ahead faster with its strategy and worldwide expansion, with 'further moves' to be announced shortly.

Decoded is an independent full-funnel marketing, advertising and design company founded in 2014 by Matt Rednor, and employs nearly 200 people in New York and Los Angeles. Performance marketing agency Metric Theory was founded in 2012 by four ex-colleagues, Ken Baker, Jeff Buenrostro, Jeremy Brown and Adam Edwards, providing data-driven services across search, social media and commerce media. The firm numbers more than 130 people across San Francisco, Denver, New York and Orange County.

Sorrell, who is S4Capital's Executive Chairman, comments: 'Both combinations continue our momentum, broadening our digital, strategic, creative, data & digital media capabilities in line with our objectives for 2021... Matt and his colleagues at Decoded share our vision of using data to develop and produce effective creative work and distribute campaigns through digital media. They have created an award-winning, highly successful agency, which will be a significant addition to the family... Our data and digital media practice is founded on providing clients with transparency and measurable results, two values at the heart of the business Ken and his colleagues have built at Metric Theory'.

Decoded Founder and CEO Matt Rednor says the new parent company is 'a group of like-minded collaborators that immediately expand our ability to disrupt the industry with a more modern approach to creativity'. Metric Theory co-founder and CEO Ken Baker comments: 'We're excited to bring our brand of numbers-obsessed, growth-obsessed, full-funnel performance marketing to MightyHive and S4Capital. It's clear that their mission and values are the same as ours, and that we'll be far better at delivering them together'.

S4 also issued a trading statement, confirming that trading for the first eleven months and expectations for December continue in line with market expectations, 'delivering strong like-for-like double digit revenue and gross profit growth and strong margins in 2020, with operational EBITDA margins improving significantly in the second half'.

Web site: www.s4capital.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.