Birds of a feather as Jaywing soars with £8m acquisition
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YORKSHIRE data science business Jaywing has snapped up a Leeds agency in a deal which values the business at just over £8m.
Jaywing, has acquired digital marketing agency Bloom Media for an initial £2.4m upfront in cash, with additional payments of £5.75m based on performance over a two-year period until March 2018.
The listed company simultaneously issued a share placing which it hopes will raise £3m through the placing of 10 million shares at 30p per share.
It says this fundraising exercise will go towards investment in the joined businesses over the coming two years.
A new subsidiary company called Newco has been incorporated, led by Alex Craven chief executive of Bloom Agency, of which Jaywing will own 75%.
The company will make a capital investment of £637,500 in it and Bloom’s existing management team will hold the remaining 25%.
In July, Jaywing acquired an Australian agency Digital Massive for £9.25m as it looks to use an acquisitive strategy to grow the business.
Martin Boddy,Jaywing chief executive, said: “This acquisition is a fundamental building block in our strategy to distribute data science-led products internationally.
“It gives us additional products and an experienced individual to lead that part of our business. Alex and his team are a great cultural fit and I’m absolutely delighted to have them as part of the team.”
Alex Craven, chief executive at Bloom, added: “Jaywing’s impressive data science credentials and its product strategy are very exciting to me personally.
“In addition, the breadth and scale of Jaywing’s client base as well as its recent acquisition in Australia provide an ideal platform for the Bloom Intelligence suite. I look forward to a rewarding future with Jaywing.”