Branded3 acquired by St Ives to help bolster growth
SEO and digital marketing agency, Branded3, has been acquired by St Ives for up to £25m.
The company, which has offices in Leeds and London, will operate as a subsidiary of marketing firm St Ives and will continue to be managed from its current locations by its existing management team, which includes Vin Chinnaraja and Patrick Altoft, the vendors and co-founders of the business.
St Ives will initially pay £10.7m for Branded3. A further £14.3m could become payable dependent on incremental financial performance for the years ending January 31 2014, 2015 and 2016.
In the financial year ended 31 January 2013, Branded3 generated adjusted
EBITDA of £1.7m on revenue of £4.1m and gross assets were £3m.
CEO of Branded3 Vin Chinnaraja, said: “We have achieved another major milestone in our growth plans and becoming part of a synergistic, forward-thinking group where there is huge potential for collaboration is a real boost for us. I am really looking forward to working with the St Ives team to fulfil our ambitious plans.”
Branded3 was advised by Leeds accountants and business advisors BDO, led by corporate finance partner Jason Whitworth, assistant director Andy Helme and Natasha Hartley. The corporate group at Leeds law firm Walker Morris, led by Debbie Jackson and Tom Mieszkowski, also advised the vendors.
BDO partner Jason Whitworth said: “The transaction highlights the quality of the region’s creative industries. Branded3 has built up an excellent reputation in the local and national marketplace. It’s acquisition by St Ives is a great strategic fit that will bolster the plc’s SEO and digital offering and play a significant part in its future growth strategy.”
Walker Morris partner, Debbie Jackson, said: “The founders of Branded3, Vin Chinnaraja and Patrick Altoft have created a leading agency with an enviable client base.
“This acquisition is a key development in the company’s history and we were delighted to work with them to help secure the acquisition and provide a platform for the next phase of their strategy.”
Established in 2003, Branded3 employs around 50 staff and has a strong B2C and B2B client base.
