Marketing agency scales up its offering to clients with acquisition

Performance marketing agency, Connective3, has today confirmed the acquisition of creative content agency Powerhouse for an undisclosed sum.

The acquisition will see Connective3’s overall headcount increase to 130, with total forecasted company revenue expected to exceed £11m.

First established in 2019, Connective3 has grown rapidly, with offices in Leeds, London, and Manchester, and a growing global client base including brands such as Ocado, Avon, and Love Holidays.

Powerhouse is a content creation studio founded in 1999 in Leeds. It operates out of a 14,000 sq ft studio space and counts a number of prominent brands as clients, including Iceland, Majestic, Yorkshire Tea and Shark Ninja.

Led by CEO Neil Adams, the agency recently celebrated its 25th anniversary.

Powerhouse’s content creation offering will align with Connective3’s creative capabilities, allowing it to offer end-to-end creative campaigns, from ideation to production and digital execution.

Tim Grice, CEO of Connective3, said: “The acquisition is an amazing way for us to mark five years of trading, and we’re beyond excited to welcome the Powerhouse team to the group.

“The relationship will allow us to elevate our creativity and produce outstanding content at scale, offering clients from both sides the skills and experience to deliver world-class campaigns.”

Adams added: “This acquisition represents an exciting new chapter for Powerhouse, building on our 25-year legacy of success and enabling our people and clients to thrive even more.

“It has been a tremendous privilege to build and nurture our incredibly talented team over the years.

“I am confident Connective3 is the perfect home for them to continue creating world-class content for clients now and in the future.”

Powerhouse will continue to function as its own entity, with the benefit of centralised support designed to fuel business growth. Initial support will come in the form of finance, operations, sales, and marketing.

With access to a wider client base, Connective3 says its longer-term aim is to explore collaboration opportunities across all clients to support the growth of all businesses within the group.

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