S4 Capital raises £400m takeover fund

The big ad holding cmpanies will be revealing their half time 2021 numbers soon so it’s no surprise when a missive from Sir Martin Sorrell’s S4 Capital pings in.

This time it’s to tell us that the digital-first group is trucking along nicely and has arranged new credit facilities via Credit Suisse, HSBC Bank and Barclays for a seven year €375 million senior secured term loan plus a five year £100 million revolving credit facility with Credit Suisse, HSBC, Barclays, JP Morgan and BNP Paribas.

These will give it £200m for “corporate purposes,” equivalent to a takeover fund of £400m as it pays half its “merger” targets in cash.

Substantial although hardly enough to buy, say, WPP (valued at £11bn, S4C is a still more than impressive £3.55bn.)

S4C says it’s in “the early stages of planning to expand its activities into a third practice area around technology services and to continue to broaden and deepen its content and data & digital media practices in the Americas and Asia-Pacific.”

Technology services could mean pretty much anything in today’s business world but, Sorrell being Sorrell, we should expect a biggish deal in the next few months. If an ad holding group came on the market you never know what might happen.

You May Also Like

About Stephen Foster

Avatar
Stephen is a former editor of Marketing Week and London Evening Standard advertising columnist. He wrote City Republic for Brand Republic and is a partner in communications consultancy The Editorial Partnership.

Leave a Reply

Your email address will not be published. Required fields are marked *

*