Agency spreads its wings with £9.25m acquisition

LEEDS and Sheffield data science agency Jaywing has acquired an Australian search marketing agency in a deal worth £9.25 (AUS$16m).

Sydney-based Massive Group Pty will mean that Jaywin can “take full advantage of the rapidly growing market in Australia.”

Jaywing has acquired 75% of the business for an initial AUS$2m, with a further $2m payable in instalments ovwer the next two years.

From July 2020 Jaywing will have the option to acquire the remaining 25% of the business, at a multiple of its average audited EBITDA, up to a maximum consideration of AUS$12m.

Digital Massive was founded in 2012 and its two current directors, Chris Pittham and Tom Geekie will stay with the business following the acquisition.

For the year to 30 June 2016, Digital Massive reported revenues of AUS$1.64m with profit after tax of AUS$412,000.

Digital Massive clients include Wedgwood, Waterford Crystal, Royal Doulton, Century 21 and Amber Tiles and Jaywing says its revenue has grown by over 300% in three years.Martin Boddy, chief executive of Jaywing

Martin Boddy, chief executive of Jaywing, (pictured) said: “Our acquisition of Epiphany in the UK in 2014 has proven to be a key driver of growth for Jaywing and we are now effectively seeking to “play the same hand” but in a less developed market. Chris, Tom and their team are a great cultural fit and I’m absolutely delighted to welcome them to Jaywing.”

Chris Pittham, MD at Digital Massive, added: “We see many similarities between Digital Massive and Jaywing’s search specialist Epiphany in terms of our business growth and direction, as well as huge attitudinal alignment with the Company as a whole. Being part of Jaywing brings opportunity for us to develop further and bring mature expertise to the Australian market.”

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