Marketing agency acquires remaining stake in Australian firm for £2.2m

Listed marketing agency Jaywing has confirmed this morning that it has acquired the remaining 25% stake in Australian-based agency Massive Group Pty for $4m (c£2.2m).

Two directors of Massive Group have exercised their put option in relation to the shares in Massive Group they controlled, which were not already owned by Jaywing.

The purchase of these shares has been completed today, so Sheffield-headquartered Jaywing now owns 100% of the shares in this business, which has traded as Jaywing Australia since 2017.

Jaywing and Massive Group entered into an agreement on 7 July 2016, whereby Jaywing acquired 75% of the shares of Massive Group, with the remaining 25% subject to a Put and Call Option from July 2020. 

This stake has been bought by Jaywing, with the consideration comprising $3m (£1.66m) immediately, followed by a series of monthly payments totalling $1m (£0.54m) between now and 30 June 2021.   

The total consideration for the purchase of the 100% interest in Massive Group is $9.5m (£5.4m).

Massive Group’s business has grown strongly since 2016 and has more than doubled its EBITDA.

It has enabled about 93% of the total consideration for the put option to be funded from funds generated in Australia.

Massive Group continues to work collaboratively with the UK business on clients and services.

Andrew Fryatt, Jaywing CEO, said: “Since the original agreement in 2016, the management team of Massive Group have very successfully driven both revenue growth and EBITDA performance, building a strong foundation for the future business for the next few years. 

“We are delighted to welcome them fully into the Group, and I know they are committed to continuing this record of growth, trading as Jaywing Australia.”