Next Fifteen agrees terms on $390m M&C Saatchi acquisition
Digital communications group Next Fifteen has agreed terms with M&C Saatchi to proceed with a cash and shares acquisition valuing the business at $390m (£310.1m.)
Representing a substantial increase on Vin Murria’s $317m (£254m) offer made just days ago, the agreement clears the way for a new digital marketing titan and ends months of fevered takeover speculation.
M&C Saatchi preferred the offer from Next Fifteen
The more “attractive” offer won unanimous approval from M&C Saatchi’s independent directors, who relish the opportunity to revitalize the business and “turbocharge” a new phase of international growth.
Tim Dyson, chief executive of Next Fifteen, said: “Bringing M&C Saatchi into the Next Fifteen group provides us with a step change in our scale and global reach, and an enhanced ability to offer digitally-driven solutions to growth-minded organizations. M&C Saatchi is synonymous with creativity and strategy, whereas Next Fifteen has built a reputation around its technology and data-driven offering.”
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Gareth Davis, chairman of M&C Saatchi, added: “The M&C Saatchi independent directors are pleased to unanimously recommend this alternative, more attractive offer, which we are confident is in the best interests of M&C Saatchi shareholders and M&C Saatchi’s other key stakeholders.
“The M&C Saatchi independent directors all consider Next Fifteen’s offer to be far superior to the offer announced earlier this week by ADV, and a clear repudiation of ADV’s response statement that it strongly disagreed its bid undervalued M&C Saatchi.”
Beyond financial considerations, the M&C Saatchi board was swayed by the complementary nature of both businesses, offering many synergies for the expansion of services and geographic reach. Next Fifteen meanwhile has been on an acquisitions spree, recently purchasing Engine UK in a $100m deal to boost its in-house advisory services.