$150m merger makes waves in the digital marketing scene

A digital lead generation marketing group has realised $150 million merger deal. Sir Martin Sorrell, the founder of WPP plc leads the digital ad and Marketing Services Company. Sorrell, the executive Chairman of S4 Capital has announced a merger with a US-based programmatic advertising firm, MightyHive, for an enterprise cost of $150million. The London-centred group affirmed that the deal extends its strategy of integrating the award-winning digital content into digital media planning, purchasing, as well as, first-party information abilities.

The MightyHive- S4 Capital merger is a crucial second strategy for S4 Capital. Sorrell is reputed as the pioneer of WPP plc, an advertising and PR giant in the industry. He has pointed out that the idea is in its implementation stage and it is expected to yield the best outcomes for the firm. In July 2018, Sorrell started his current venture with the acquisition of MediaMonks, a Dutch digital production firm. The takeover marked his initial acquisition after the untimely departure from WPP which he operated for over three decades.

Sorrel hinted that the programmatic offering from MightyHive and the digital creative production from MediaMonks will provide S4 Capital’s customers with seamless, fully integrated and end-to-end capabilities in the new digital marketing landscape. Since MediaMonks has expanded its operation in San Francisco, S4 Capital will focus more on the US’s West Coast and the digital natives at a couple of firms including Facebook, Google, Microsoft, and Apple. The company also focuses on working with other major players in software development including Oracle, Salesforce, and Adobe to optimise its lead generation marketing.

Apart from sealing the merger deal, S4 Capital has announced the appointment of new directors of the firm including Peter Rademaker, Wesley ter Haar, and Victor Knaap. Other appointees include Christopher Martin from COO and Peter Kim, CEO from MightyHive. S4 Capital plans to finance the cash fraction of the merger by providing £45.9 million through the issue of over 67.3 million shares going for 110 pence per share, and £28.1 million through company pricing. The Stanhope Entrepreneurs Fund leads the new capital raising.  

Apart from managing the growth-capital fund, Stanhope also functions as the advisory and global investment group. S4 Capital plans to work with Stanhope as a long-term strategic partner. The CEO and founder of Stanhope Capital, Daniel Pinto, will also join the firm’s board.  

According to Sorrell, S4 Capital plans to provide its clients with influencer-centred millennial brands with new era/age digital marketing services focusing on three core areas initially; digital media purchasing, creative concepts, and the establishment of global digital content tool’s first party information fuelling for digital media planning. S4 Capital enjoys a market cap of over €250 million and it has forecast revenue growth of over £100 million towards the end of the year. The marketing and business success will essentially depend on effective lead generation marketing strategies.