Deals



Jaywing plc Acquires Epiphany Solutions Limited


Posted: 18th March 2014 08:51

Jaywing plc (AIM: JWNG) ("Jaywing" or the "Company"), a marketing and consulting business that operates largely in the digital marketing sector, is pleased to announce that it has acquired Epiphany Solutions Limited ("Epiphany"), a search marketing agency based in Leeds and London.

The consideration for 100% of Epiphany's issued share capital consists of an initial cash payment of £11.0 million, plus a further deferred cash payment of £1.0 million and earn out consideration of up to £6.0 million, which would be payable in two instalments over the next two years, subject to future performance of Epiphany. The acquisition is being funded through the Company's existing cash resources and bank debt.

Epiphany was founded in 2005 by Shane Quigley and Robin Skidmore and is led by Rob Shaw, all of whom will remain employed in the business going forward. Epiphany specialises in search engine marketing and is one of only thirty UK agencies that have achieved Certified Google Analytics partner status.  Its clients include a broad range of blue chip companies such as Virgin Holidays, Tesco, AXA Insurance and Pets at Home. Epiphany has experienced strong growth over the past three years. It reported a pre-tax profit of £1.43 million for the 12 months ended 31 January 2013 and gross assets of Epiphany as at 31 January 2013 were £2.34 million.

The acquisition of Epiphany will strengthen the Company's performance in search marketing and increase its use of "Big Data" science in powering highly creative multi-channel marketing activities.  In combination with its existing businesses, it will materially enhance its already significant north of England operations and provide a London base.
Rob Shaw will continue to head up Epiphany with Robin Skidmore focusing on growing their Social Public Relations proposition, which operates under the Shackleton brand. Shane Quigley will take on a broader product development role for Jaywing, in addition to retaining responsibility for the fledgling Epiphany Australia business.

Commenting on the deal, Martin Boddy, said: "This acquisition is a big statement of our intent to re-invent the business. By focusing on digital opportunities to marry data science with brand, acquisition and customer marketing, we will achieve superior results for our clients and better experiences for their customers. Not only is Epiphany a well run business with good revenue visibility, it is also a great cultural and geographic fit. Most importantly, it provides our unrivalled team of over 50 data scientists with access to the digital data which will fuel our innovation."

Rob Shaw, Group CEO at Epiphany, added: "We've always prided ourselves on being the first to innovate in search, and this deal represents the next evolution; connecting Jaywing's expertise in data science with our heritage in content marketing, global paid search and website optimisation. There are also large client bases to tap into, so all in all this creates a tremendous opportunity for everyone."

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