M&C Saatchi gets acquired for US$387m

Next Fifteen Group has agree to buy M&C Saatchi for US$387.2 million which will see Next Fifteen “establish a truly global platform in the digital marketing and consulting sectors”.

According to the Next Fifteen board, the acquisition presented a “compelling opportunity to combine Next Fifteen and M&C Saatchi and establish a truly global platform” in the digital marketing and consulting sectors, a platform that leverages top-flight creativity, technology, data, business consulting and digital marketing to deliver meaningful change for the enlarged client base.

With the acquisition, Next Fifteen hopes to build a growth consultancy that combines specialist capabilities with global scale. The board of Next Fifteen believes that the successful business models for the foreseeable future will be purpose-driven, driving meaningful change, and that creativity will be a key differentiator in creating and delivering them. It also believes that the acquisition “creates a viable alternative for customers not well served by the big four consulting and marketing services groups”.

Some factors that made the agency an attractive one to Next Fifteen include the complementary geographic presences in the US, UK, Asia and Australia, along with loyal, blue-chip clients with minimal overlap. M&C Saatchi's expertise in the public sector, in both the UK and particularly the US, would add a new dimension to Next Fifteen's service offering and marketing position.

The deal comes after M&C Saatchi’s independent directors, rejected four offers from tech entrepreneur Vin Murria’s investment vehicle AdvancedAdvT (ADV) since January. Gareth Davis, chair of M&C Saatchi said the offer is a more attractive one in the best interests of M&C Saatchi shareholders and M&C Saatchi's other key stakeholders. "The recommended cash and share acquisition from Next Fifteen implies a value for M&C Saatchi that represents a significant premium to recent trading levels and provides M&C Saatchi Shareholders with an opportunity to crystallise value and to benefit from the potential future upside of the Enlarged Group. 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” Davis added.

Tim Dyson, CEO of Next Fifteen said bringing M&C Saatchi into the Next Fifteen group provides Next Fifteen with a step change in our scale and global reach, and an enhanced ability to offer digitally driven solutions to growth-minded organisations. “M&C Saatchi is synonymous with creativity and strategy, whereas Next Fifteen has built a reputation around its technology and data driven offering. This makes for a great combination, and we are confident we can accelerate the ambitions of both businesses, creating significant value for our clients, our people and our shareholders,” said Dyson.

Moray MacLennan, CEO of M&C Saatchi  added that this merger will be a powerful accelerator for M&C Saatchi. “Through connecting with Next Fifteen capabilities and companies, our ability to deliver Meaningful Change for existing and new clients will be deepened and broadened, turbo charging our next phase of growth,” MacLennan said.

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