Management takes control at Latitude after administration
Following the news of its administration which has apparently cost Barclays ‘millions’, digital marketing agency Latitude has announced that the company’s management has team has increased its stake in the company.
The MBO deal has been backed by private equity firm Vitruvian Partners, which bought Latitude in December 2007 for £55million.
As part of the ‘pre-pack deal’ it is understood that Barclays has agreed to write off its loans to Latitude after it provided a £10m loan to Vitruvian in 2007 to aid the acquisition of the company.
The company has over 90 members of staff with offices in both London and Warrington.
In a statement, Alex Hoye, chief operating officer of Latitude Digital marketing, explained: "This deal secures latitude’s ability to innovate and grow in a disruptive marketing. Marketing spend online surpassed TV for the first time in the UK this year – advertisers’ continued shift of expenditure to digital services provides growth opportunities for firms like Latitude in any economic environment. We share a vision with our investors to take the business forward, building on investments we have made in 2009.”
Commenting on the investment Ian Riley from Vitruvian Partners, said; “The marketing services sector has had a difficult time in the last 12 months. However, Latitude is a market leader and innovator with a talented management team. Vitruvian remains supportive of Latitude’s strategy.”