Sir Martin Sorrell's S4 Capital eyes the US with £120 million dealComments Off on Sir Martin Sorrell's S4 Capital eyes the US with £120 million deal
Sir Martin Sorrell’s S4 Capital has stepped up its ambitions to break America, snapping up Silicon Valley-based digital marketing firm Firewood for $150 million (£120 million).
Firewood, which has more than 300 employees and whose major client is Google, will merge with Amsterdam-based MediaMonks, a digital company that is S4’s biggest division.
Sorrell said: “Firewood has an enviable client list comprising many of Silicon Valley’s finest.” S4 has paid $112.5 million up front — half in cash and half in shares — and a further $37.5 million will be dished out if Firewood hits its targets this year.
Yesterday S4 completed a £100 million share sale and Sorrell said the cash left over will be used to fund another wave of takeovers.
Sorrell said: “We over-raised. Expect more acquisitions this quarter.”
S4 has grown rapidly since it was founded in May 2018 and Sorrell has carried on his acquisition-hungry strategy which he implemented for 33 years at WPP. S4 Capital shares were up 5p at 145p.