Home Finance & Investments Shopper marketing business acquired in multi million pound deal

Shopper marketing business acquired in multi million pound deal

Sam Knights, CEO of Shopper Media Group

Shopper Media Group, a data-led business with offices in London, Manchester and Liverpool, has been acquired by specialist marketing and communications organisation Next 15 Communications Group plc in a deal, supported by a team from law firm Clarion, with an initial consideration of £15.7m and further deferred consideration to pay over the next few years.

Shopper Media Group (SMG) and its subsidiaries, Capture Marketing, Lobster Agency and Threefold, specialises in data-led commerce marketing activation, connecting retailers and brands with shoppers at the point of purchase both online and in-store. Utilising its proprietary technology IP, SMG is able to help its customers determine and activate the optimum media spend, subsequently creating and delivering campaigns across a multitude of channels.

Clients span household-name retailers such as The Very Group and Co-op right through to global FMCG groups including Unilever, Pepsico and Danone.

Led by CEO Sam Knights, who prior to SMG was with P&G, and founded by Matt Lee and Joel Hopwood in 2008, both ex-Dunnhumby, all will remain with the business as will its talented senior management team. SMG will continue to operate as an independent brand within the Next 15 Group.

In addition to the initial consideration for the acquisition of approximately £15.7 million, top-up payments are anticipated to be payable over the next four years, based on the EBITDA performance of SMG in each preceding period. The acquisition is expected to be earnings accretive for Next 15 in the current financial year.
SMG reported net revenues of £8.9m and adjusted profit before tax of £3.5m for the year ending 30 September 2020.

The deal completed on April 9th with SMG advised by Sarah Harrison, Jonathan Simms and Santino Stifanelli of Clarion’s corporate team. Corporate finance advice was provided by Tony Walford from Green Square Corporate Finance and tax advice was provided by Amanda Waterhouse from BHP.

Sam Knights, CEO of Shopper Media Group, commented: “SMG has been leading the way in connected commerce marketing for the past 12 years, building data-driven tools for brands and retailers to unlock real value at the point of consideration and purchase. We are very excited about all the opportunities that becoming part of the Next 15 family will bring, not least allowing us to further develop our service for our current clients whilst expanding SMG’s successful model globally.”

Jonathan Simms from Clarion commented: “The team at SMG are exceptional and I have no doubt that their union with Next 15 will bring further success. It has been fantastic to have been able to use our wealth of experience in the marketing and media sector to help deliver this transaction for the SMG shareholders.”