UK-based marcoms group Next Fifteen Communications has acquired predictive data-led business Shopper Media Group (SMG) and its subsidiaries - Capture Marketing, Lobster Agency, and Threefold Agency - for £15.7m.
SMG specialises in connecting retailers and brands with shoppers at the point of purchase - both online and in-store. The business was founded in 2008 by Joel Hopwood and Matthew Lee, who were previously with Tesco-owned customer data firm dunnhumby, and who will continue in their roles following the acquisition. Former Procter and Gamble exec Sam Knights (pictured) will continue to run the business as CEO, and SMG will continue to operate as an independent brand within Next 15, whose other subsidiaries include data and insights group Savanta.
For the year ended 30th September 2020, SMG reported net revenues of £8.9m and adjusted profit before tax of £3.5m. Of the £15.7m price tag, approximately £11.8m is payable in cash, with the balance to be satisfied by the issue of 569,181 new ordinary shares in Next 15. A top-up payment is anticipated around February 2022 based on the EBITDA performance of SMG for the year ending 30th September 2021, with further deferred consideration payable in 2023 and 2025 based on future EBITDA performance.
Knights comments: 'SMG has been leading the way in connected commerce marketing for the past twelve years, building data-driven tools for brands and retailers to unlock real value at the point of consideration and purchase. We are very excited about all the opportunities that becoming part of the Next 15 family will bring, not least allowing us to further develop our service for our current clients whilst expanding SMG's successful model globally'.
Web sites: www.next15.com and www.shoppermediagroup.com .
All articles 2006-21 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.