Monday 4 January 2021 7:38 am

S4 Capital chases post-Brexit expansion with two more acquisitions

S4 Capital today said it was ramping up its expansion plans after Brexit as the advertising firm unveiled a further two acquisitions.

Sir Martin Sorrell’s marketing group has snapped up creative agency Decoded Advertising and data-driven performance marketing firm Metric Theory.

Read more: S4 Capital revenue rises after bumper BMW account win

It marks the latest in a flurry of acquisitions for S4, which has grown rapidly since its inception following Sorrell’s departure from WPP in 2018.

In a statement this morning the company said it would pursue its aggressive growth strategy even faster now that uncertainty surrounding the Brexit process had largely lifted.

S4, which now has a market valuation of roughly £2.6bn, is expected to announce further acquisitions in the coming months.

The takeovers will see Decoded and Metric Theory merged with S4’s Mediamonks and Mightyhive divisions respectively.

Decoded, which was founded in New York in 2014, serves clients including T-Mobile, Intuit and Visa.

San Francisco-based Metric Theory, was founded in 2012 and counts Gofundme among its clients.

S4 said the takeovers will add roughly 350 people to its current workforce of 3,400 and add combined gross profit of $70m in 2020.

Read more: S4 Capital plots further expansion despite Covid-19 profit hit

Much like its previous acquisitions, the deal will be paid for half in cash and half in S4 shares. The company said it will maintain significant net cash balances after the transaction.

The ad firm said it was on track to deliver full-year results in line with market expectations, forecasting strong double-digit revenue and gross profit growth.