Next 15 has swooped to acquire fellow London company Engine UK in a £77.5 million deal.
Engine UK is the UK arm of the Engine creative network. A digital transformation, communications and creative business, it employs around 600 staff and has 300 UK and international clients.
AIM-listed Next 15, a tech-driven global communications network which owns agencies such as Elvis, ODD, Velocity and Mighty Social, will pay £61.7m cash on completion.
The deal, funded from existing debt facilities as well as the proceeds of a new £50m share placing, will add growth consultancy capabilities and clients including AstraZeneca, E-ON, Sky, the Home Office and the Ministry of Justice.
In the year ended 31st December 2021, Engine UK increased its net revenue by 18% to £88.6m and generated adjusted EBITDA of £11.8m.
“We are delighted to welcome the people and clients of Engine UK to Next 15,” said CEO Tim Dyson.
“Acquiring this broad-based digital transformation, communications and creative business fits well with our track record and strategy of adding growth businesses which then contribute to our target of doubling the size of our business in the next three to five years.
“Its three businesses are home to great talent and strong client relationships and provide multiple opportunities to expand and further apply our growth consultancy services.
“We look forward to working with the management teams, staff and clients of the three businesses at Engine UK and the other industry leaders within Next 15 to execute our growth plan built on our model of independence, incentives and investment.”