Jaywing in talks to acquire York software business
Marketing agency Jaywing is closing in on an acquisition buoyed by its strongest pipeline of new business for three years.
It is in talks to buy Midisi, a marketing software development business based in York. Jaywing currently sells Midisi’s Decision software under a licence agreement and is now looking to buy the company.
The software enables customers to automate pay-per-click advertising management.
Jaywing has also revealed that net revenue grew 16% in the year to March, rising to £23.3m. This was helped by client wins including Hallmark Cards, CityFibre and Skipton Building Society.
It will publish its full-year results next month, ahead of its AGM.
Jaywing’s chief executive Andrew Fryatt said: “The combination of double-digit revenue growth and a more efficient cost base has enabled us to increase underlying profitability, giving us confidence for the year ahead.
“Whilst we remain cautious about the overall economic outlook, our pipeline of new business is stronger than at any time in the last three years, and we are continuing to win new clients in both the UK and Australia.”
Jaywing has increased the headroom in its existing short-term finance facility by £1m, which it said was “partly in anticipation” of completing the acquisition.
The company said the increase would cover the initial transaction costs, with subsequent payments funded out of the Company’s cashflows.
Jaywing is also talking to its lenders about rescheduling the existing debt arrangements.