S4 Capital has reached an agreement to merge with MightyHive for an enterprise value of US$150 million. S4 Capital is led by Martin Sorrell, ex-WPP CEO.
According to S4 Capital, MightyHive has a strong growth record, with revenue increasing from 2015 to the year ended 31 December 2017 at a CAGR of approximately 129 percent. and Adjusted EBITDA increasing at a CAGR of 196 percent, in the same period.
“The merger with MightyHive marks an important second strategic step for S4 Capital. The peanut has now morphed into aMartin Sorrell, Executive Chairman of the Group
coconut,and is growing and ripening. MediaMonks’ award-winning digital creative production and MightyHive’s market-leading programmatic offering will give S4 Capital’s clients end-to-end, fully integrated and seamless capabilities in purely digital marketing. Following both the MightyHive merger and the recent opening of the MediaMonks office in San Francisco, S4 Capital’s focus on the West Coast of the United States and the digital natives at companies like Apple, Microsoft, Google, and Facebook, not forgetting the software giants Adobe, Salesforce andOracle, will intensify.
S4 Capital also announced the appointments of Victor Knaap, Wesley ter Haar and Peter Rademaker as directors, and the appointment of Peter Kim and Christopher Martin, the CEO and COO of MightyHive, as directors of the S4 Capital conditionally on and with effect from Admission.
Daniel Pinto, founder, and CEO of Stanhope Capital, the global investment and advisory group, which is leading the capital raising, will also join the Board at that time.
MightyHive shareowners (management and people) will receive their consideration 50 percent. in cash and 50 percent. in New Ordinary Shares. New Ordinary Shares issued as consideration for the MightyHive Merger will be Restricted for a period of two years from Admission.
MightyHive’s third-party investors, which represent approximately 21 percent. of the equity, will receive their consideration 100 percent, in cash.
S4 Capital will establish an incentive scheme with an aggregate value of US$5 million for MightyHive’s people and it will pay US$5 million in restricted cash bonuses to MightyHive’s people following completion of the MightyHive Merger out of the existing cash resources of the Group.