Global marketing services group acquired in private equity deal

A Birmingham-headquartered and globally-operating marketing group has received a major private equity investment in a deal led and financed out of the city.

Technology-led outsourced marketing services provider, Inspired Thinking Group (ITG) has received a funding injection from the Birmingham office of Equistone Partners, one of Europe’s leading mid-market private equity investors.

The deal has been supported by a raft of Birmingham-based financial, professional and advisory firms (see below).

The transaction sees Equistone acquire a majority stake in ITG from Bridgepoint Development Capital – alongside management – for an undisclosed sum.

Headquartered at Fort Dunlop and with a network of offices globally, ITG has grown rapidly since the company was founded by Simon Ward in 2009. Its growth has been supported by a series of locally-funded transactions, which saw Livingbridge invest in 2010, before BDC acquired a majority stake in 2014.

ITG is a marketing technology and services business that helps global retailers and brands improve the efficiency, speed, cost and control of their marketing operations. It currently employs more than 600 people, with 220 based at the group’s headquarters and digital studio at Fort Dunlop.

ITG Fort Dunlop Artworking and Digital Studio

In addition, it has a technology centre – Media Centre – in Dartford, where it develops its marketing resource management technology, plus offices in central London, which are home its strategic retail agency, Vitamin, and its data and eCRM arm, which delivers over four billion personalised communications a year.

Globally, the group has offices in Chicago and New York, and client offices throughout Europe.

Clients include Heineken, M&S, Audi, Tesco, Puma, KFC, Renault, Sainsbury’s, TUI Group, Liberty Global, Merck Sharp & Dohme and Virgin Trains.

The high profile deal also shines the spotlight on the Birmingham professional services community.

The deal has been advised almost exclusively out of Birmingham, with Equistone advised by Eversheds Sutherland (legal), Clearwater International (corporate finance), PwC (tax and financial diligence), in addition to AMR International, Confido and Marsh.

BDC was advised on the sale by Catalyst Corporate Finance (corporate finance), EY (financial diligence), CIL Management Consultants (commercial diligence) and Ropes and Gray (legal).

ITG’s management was advised by Catalyst Corporate Finance (corporate finance advisory), Parisi Tax (tax) and Thinking Legal (legal).
Debt financing for the transaction was also delivered from the Midlands, with Lloyds Strategic Debt Finance supporting the business for the second time alongside HSBC; DLA Piper provided legal advice to the banks.

Following the funding injection, ITG will continue to expand its range of innovative online and offline marketing services, which include full digital services, eCRM, a 24/7 content creation studio, print management, strategic planning and creative.

Simon Ward

Simon Ward, CEO of ITG – and EY Midlands Entrepreneur of the Year in 2015, said: “I’m very proud of what we have achieved since founding ITG. We set out to be a disruptor in the sector and continue to achieve this.

“The speed with which the company has established itself as a leading marketing services provider is a reflection of the amazing team we have at ITG and the continued support we have received from our investors at each stage of our growth trajectory.

“I am excited to continue ITG’s development with our new partners at Equistone, who are a great fit to support our continued ambition to develop and lead this sector and significantly expand our international footprint.”

Paul Harper

Paul Harper, partner at the Birmingham office of Equistone Partners Europe, said: “This is a hugely innovative local company, and we are delighted that it continues to be supported by Birmingham financial, professional and advisory firms.

“We are delighted to be working with Simon and his team to continue driving ITG forward. Their disruptive business model, founded on technology, is trusted by a portfolio of well-known clients, and is ideally positioned to further accelerate growth through investment in the service proposition and international expansion.”

Paul Whitehouse, director of Strategic Debt Finance at Lloyds Bank Commercial Banking, said: “ITG has seen impressive growth through delivering innovative marketing services and expertise to some of the biggest global brands.

“Providing the facilities to support this transaction has enabled the business to secure renewed investment, and it is now well positioned to accelerate growth by broadening its international presence.”