Next 15 has confirmed that it is in discussions to sell its PR and marketing divisions amid media speculation of a potential £230 million swoop.
Sky News reported that private equity firm Epiris is eyeing a £230m swoop for several of the London-listed tech and data-driven growth consultancy’s divisions.
The potential deal is said to include PR firms MHP Communications and Outcast, marketing company M Booth and Activate, a demand generation specialist.
Sky said Epiris, based in London and which owns restaurant chains Las Iguanas and Cafe Rouge, had approached Ares Management to help finance any potential bid.
Next 15 would focus on its tech and data brands following any successful divestments.
The speculation follows a period of transition at the consultancy, which issued a profit warning this year and saw long-serving boss Tim Dyson retire in June after 33 years in charge.
Dyson oversaw the company’s IPO in 1999 and its transformation from PR agency Text 100 into a global network of digital and data-led consultancies. He was succeeded by Samuel Knights (pictured).
In August we reported how Next 15 is to permanently cease operations at its Silicon Valley venturing arm Mach49, a unit acquired in 2020, after it uncovered ‘potential serious misconduct’ there in June.
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That led to the dismissal of senior executives Linda Yates, Russ Lampert and Paul Holland. Next 15 said at the time that the matter has been referred to law enforcement and that it would withhold remaining earnout payments.
Next 15’s share price currently stands at 397p with a market capitalisation of £418m – which is more or less where it was a year ago – following a 43% rally in the last six months.
“The board… notes the recent media speculation in relation to the possible sale of a selected number of its brands,” it said in a notice to the London Stock Exchange this morning.
“The company confirms that it is in discussions to explore the terms of a potential disposal of a selected number of its brands, in line with its stated simplification strategy.
“At this time, there can be no certainty that any agreement will be reached, nor as to the terms of any such agreement. The board will only consider the sale of any of its brands if that transaction meets its minimum value thresholds and which adequately reflects the strengths and prospects of those brands.”