Friday 21 June 2019 7:31 am

Sorrell’s S4 Capital to buy marketing firm Biztech as it ramps up global expansion

Sir Martin Sorrell’s S4 Capital is set to snap up marketing tech firm Biztech in its latest bid to expand globally and take on traditional ad agencies.

S4 Capital said Media Monks, its content division, has conditionally agreed a merger with the Melbourne-headquartered firm for an undisclosed sum.

Read more: Sir Martin Sorrell: Traditional agency model is not fit for purpose

Biztech, which pulls in revenue of roughly A$15m (£8.2m), offers marketing transformation and customer experience services to clients, with a particular focus on Adobe’s online marketing software.

The deal, announced on the final day of Cannes Lions festival marks S4 Capital’s latest expansion effort, establishing a foothold for Media Monks in Australia and Canada.

S4, which specialises in digital marketing, said the deal will also allow it to expand its existing relationship with Adobe.

“We are delighted with the proposed deal, which will bring the entire Biztech team to the S4 Capital family,” Sorrell said in a statement.

“Their highly-specialised Adobe expertise and close-knit client relationships make Biztech the perfect partner to accelerate our business in Australia and beyond.”

The takeover, which is subject to audit checks and merger control, will be a 50-50 split between cash and equity, in keeping with S4’s previous deals.

S4 last year paid £266m for Dutch firm Media Monks, before snapping up Mightyhive for £117m just a few months later.

Read more: Sorrell poaches two media execs with links to WPP for his S4 Capital venture

Sorrell, who has been locked in a war of words with old firm WPP since his abrupt departure last year, has grown S4 to a market capitalisation of roughly £600m and unveiled plans to double the firms revenue and gross profit in the next three years.

Biztech chief executive Michael Patishman said: “We are thrilled to be asked to partner with S4 Capital and launch Media Monks in new territories in Australia, which offers exciting opportunities for our people and a broader service offering for our clients.”