Next 15 Communications Group is set to buy Engine Group UK, owner of Engine Creative ad agency, for £77.5 million.
According to the marketing firm, funds of £50 million were raised for the acquisition from the company’s debt facilities and the proceeds of a proposed placing of new ordinary shares in the company.
A cash payment of £61.7 million will take place once the deal is confirmed.
As part of the buy-out, Next 15’s creative agency ODD plans to merge with Engine Group’s digital creative agency Engine Creative. As a result, Phil Fearney will become the new CEO for the combination of Engine Creative and ODD.
READ MORE: Havas UK appoints new chief client officer
Despite the acquisition, Engine’s Emma Robertson and Alex Bigg will continue to lead the company’s transformation and communications (MHP Mischief) division.
Currently, Engine has 300 UK and international clients, including global brands such as Sky, E-ON and AstraZeneca. The company has 600 staff members working across three divisions: digital transformation, communications and creative.
“We are delighted to welcome the people and clients of Engine to Next 15. Acquiring this broad-based digital transformation, communications and creative business fits well with our track record and strategy of adding growth businesses,” Next 15 CEO Tim Dyson said.
“Its three businesses are home to great talent and strong client relationships and provide multiple opportunities to expand and further apply our growth consultancy services.”
Click here to sign up to Marketing Beat’s free daily email newsletter
