Mar 3, 2022

Next 15 agrees to acquire Engine Group

Next Fifteen Communications Group plc is delighted to announce that it is acquiring Engine Group Ltd for an enterprise value of £77.5 million.

Engine is a broad-based digital transformation, communications and creative business with approximately 600 staff and 300 UK and international clients. They have a high quality private and public sector client base, including global brands such as AstraZeneca, E-ON, Sky, and public sector clients including the Home Office and the Ministry of Justice.

The Acquisition will be funded from the Company's debt facilities and the proceeds of a proposed placing of new ordinary shares in the Company, raising approximately £50 million, also announced today.

Engine’s business is comprised of three divisions: Communications, Creative and Transformation, providing a range of services across business transformation and client engagement campaigns.

o The Communications division provides a broad range of services including corporate strategy, positioning and communications for the financial, healthcare and consumer market. It is one of the UK’s leading full-service strategic communications consultancies, and trades under the brands of MHP and Mischief, delivering above industry growth rates and margins

o The Creative division provides digital brand experiences, integrated online and offline advertising and influencer marketing. Engine Creative is a highly regarded and award-winning digital creative agency which the Company plans to merge with its ODD creative agency to deliver a digitally native, data-driven creative agency

o The Transformation division offers technology and digital transformation consulting that combines strategy, data and technology to deliver meaningful change to public and private sector organisations. Client base is predominantly public sector, with significant growth opportunity in the private sector with scope for margin expansion

Emma Robertson and Alex Bigg will continue to lead Engine Transformation and MHP Mischief, respectively. Phil Fearnley will become the new CEO for the combination of Engine Creative and ODD, the existing Next 15 creative agency focused on fashion, retail and lifestyle brands.

Tim Dyson, CEO of Next 15, said: “We are delighted to welcome the people and clients of Engine to Next 15. Acquiring this broad-based digital transformation, communications and creative business fits well with our track record and strategy of adding growth businesses which then contribute to our target of doubling the size of our business in the next three to five years. Its three businesses are home to great talent and strong client relationships and provide multiple opportunities to expand and further apply our growth consultancy services. We look forward to working with the management teams, staff and clients of the three businesses at Engine and other industry leaders within Next 15 to execute our growth plan built on our model of independence, incentives and investment.”

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