Jaywing to acquire Sydney digital marketing agency to further expand in Australian market

Jaywing plc, a Sheffield-based agency specialising in the application of data science, has entered into an agreement to acquire Frank Digital Pty Ltd, a digital marketing agency based in Sydney, Australia.

In addition, Jaywing has also announced a conditional placing to raise up to £1.3m to finance the initial consideration payable of the acquisition.

Jaywing’s operations in Sydney has continually grown since its acquisition of search agency Digital Massive in 2016, which now operates under the Jaywing brand.

This acquisition of Frank Digital will further expand Jaywing’s position in the Australian market, delivering additional scale and augmenting its existing services with website and digital campaign expertise.

Frank Digital specialises in digital marketing, websites and mobile applications. The agency provides services to a broad range of companies, including global investment manager AMP Capital, hospitality firm Merivale, and multi-platform publisher Bauer Media.

Founded in 2009, Frank Digital will see its current director Matt Barbelli remain employed in the business going forward. As at 30th September 2017, Frank Digital had net assets of $198k.

Rob Shaw, Jaywing plc CEO, 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.”

To complete the acquisition, Jaywing has agreed to purchase 75% of the issued share capital of Frank Digital for $1.2m (subject to working capital and net debt adjustments) payable in cash on completion.

Subject to the achievement of certain EBITDA targets, Jaywing will pay to the seller two further earn out payments for the periods from 1st July 2018 to 30th June 2019 and from 1st July 2019 to 30th June 2020 subject to a maximum aggregate payment of $1.2m.

On completion, Jaywing will be granted an option to buy, and Frank Digital will be granted an option to sell, at a price of up to $2.35m. Jawying believes the acquisition is expected to be earnings enhancing within 12 months from completion.