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Jaywing to acquire Australian marketing firm, announces placing
Digital marketing services provider Jaywing announced a conditional placing to raise up to £1.3m in order to fund its acquisition of Australian firm Frank Digital.
Jaywing said that as its operations in Sydney had continually expanded since the acquisition of search agency Digital Massive in 2016, it saw further increases in digital advertising spending in Australia over the next few years and that the purchase of Frank Digital, a digital marketing agency based in Sydney, marked a perfect opportunity for the group to capitalise on this.
After seeing success in cross-selling its products and services in the UK, Jaywing's improved offering was deemed ideally suited to reap similar opportunities in Australia.
Jaywing agreed to purchase 75% of Frank Digital's issued share capital for a total consideration of AUD$1.2m, payable in cash upon on completion, with a maximum $1.2m in payments, subject to meeting EBITDA targets, to come before June 2020.
Upon transaction close, Jaywing would be granted an option to buy the remaining 25% at a price of as much as AUD $2.35m.
Jaywing chief executive, Rob Shaw, said, "Our acquisition of Digital Massive in 2016 has performed well, with growth in Australia outstripping that of the UK. By creating a larger agency in Australia that is consistent with our international growth strategy, we will be able to take further advantage of a growing market and consolidate our position as an agency with a reputation for excellence. Matt and his team are a great cultural fit, with an existing relationship between them and our existing operation across a number of clients."
As of 1200 GMT, shares had dropped off 2.08% to 24.97p.