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S4Capital plc announced a combination between its Media.Monks unit and Technology Services firm TheoremOne on 17 May 2022. TheoremOne generated over $58 million in revenues in 2021 with a growth of almost 40% and employs over 370 experts. This combination will add one client account generating over $20 million in annual revenue and contribute over 5% to S4Capital's 2022 EBITDA.
| Date | 17 May 2022 |
| Time | 07:00:10 |
| Category | Acquisitions and alliances |
| ID | 7424L |
S4 Capital plc ("S4Capital" or "the Company")
S4Capital announces combination with Technology Services firm ThereomOne, expanding its capabilities and client base in the core US market
17th May, 2022 -- S4Capital plc (SFOR.L), the tech-led, new age/new era digital advertising and marketing services company, announces a combination between TheoremOne and Media.Monks, which significantly expands the capabilities of its Technology Services practice. The merger augments its Technology Services and consulting capabilities and expands its client base. TheoremOne is a leader in agile, full-stack, innovation, engineering and design and helps major enterprises achieve strategic digital transformation.
TheoremOne was founded in 2007 by Will Jessup (Founder & Head of Services) and has been led since 2017 by Brady Brim-DeForest (CEO). Headquartered in Los Angeles with a team of over 370 experts distributed around the world (70% in North America), TheoremOne helps clients such as American Express, AT&T, Intel, Starbucks, Caterpillar, and several of the world's leading technology companies conceptualise, build, support and manage their digital products, services and experiences. TheoremOne generated revenues of over $58m in 2021 with growth of almost 40% and are anticipating continued strong growth in 2022, which is already reflected in progress throughout Q1 2022. The consolidation of TheoremOne client revenue with S4Capital will add one "Whopper" account (generating over $20 million in annual revenue) and contribute to several others. In addition it will add over 5% to S4Capital's 2022 EBITDA.
Sir Martin Sorrell, S4Capital Executive Chairman said, "With the intersection of Marketing, Sales and Information Technology continuing to be a key topic for brands and all C-suite executives, we at S4Capital are building a genuinely integrated offer for our clients comprising best-in-class technology services combined with content and data&digital media expertise. We are delighted to welcome Brady, Will, David and their colleagues - their vision and ambition will no doubt be a great fit for us."
Brady Brim-DeForest, TheoremOne CEO, said "We wanted a partner that could serve both as an accelerant for our growth and that was passionate about helping us disrupt the technology consulting ecosystem - joining forces with Media.Monks and S4Capital means we'll be taking the field with some of the best talent in the world. The entrepreneurial, growth-focused culture at S4Capital is one where I'm confident our team will feel right at home."
Will Jessup, TheoremOne Head of Services and Founder, said "We are thrilled to embark on the next phase of TheoremOne's growth and development with our partners at Media.Monks and S4Capital."
DJ Edgerton, Co-Founder, Media.Monks, said "In the 6 months since merging Zemoga with Media.Monks we have seen incredible client traction and revenue synergies, the combination of deep engineering and technology skills with creative, data&digital media has proven very attractive to clients. The added capabilities, clients and scale that TheoremOne will bring can only accelerate this progress."
Enquiries
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S4Capital plc |
Tel: +44 (0)20 3793 0003 |
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Sir Martin Sorrell, Executive Chairman |
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Powerscourt (PR adviser to S4Capital plc) |
Tel: +44 (0)77 8670 2526 |
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Robin O'Kelly/Jane Glover |
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About TheoremOne
TheoremOne is an innovation and engineering company that advises clients on product strategy, engineering, design, and culture, then partners with them to build and launch technology-driven solutions to their most complex problems. TheoremOne is chosen by clients when results matter most - becoming the agent of change, and driving a transformation that involves not only technology, but also people, process and leadership. Founded in 2007, and headquartered in Los Angeles, TheoremOne's global team of engineers, designers, technologists, researchers, strategists, and advisors, has deep expertise across a broad variety of industries including consumer electronics, automotive, manufacturing, supply chain, healthcare, finance, and entertainment.
About S4Capital
S4Capital plc (SFOR.L) is the tech-led, new age/new era digital advertising and marketing services company, established by Sir Martin Sorrell in May 2018.
Its strategy is to build a purely digital advertising and marketing services business for global, multinational, regional, local clients and millennial-driven influencer brands. This will be achieved by integrating leading businesses in three practice areas: Content, Data&digital media and Technology services, along with an emphasis on "faster, better, cheaper" executions in an always-on consumer-led environment, with a unitary structure.
Digital is by far the fastest-growing segment of the advertising market. S4Capital estimates that in 2021 digital accounted for over 60% (for the first time) or $400-450 billion of total global advertising spend of $680-700 billion (excluding over $500 billion of trade promotion marketing, the primary target of the Amazon advertising platform) and projects that by 2025 total global advertising spend will expand to $975 billion and digital's share will grow to approximately 70%, accelerated by the impact of covid-19. In fact 97% of the projected growth in Advertising spend between 2021 and 2025 will come from Digital. Global spend on Digital Transformation (the primary addressable market for Technology Services) is growing at 21% CAGR and projected to be $879bn by 2025.
In 2018, S4Capital combined with MediaMonks, the leading AdAge A-listed creative digital content production company led by Victor Knaap and Wesley ter Haar, and then with MightyHive, the market-leading digital media solutions provider for future thinking marketers and agencies, led by Peter Kim and Christopher S. Martin.
Since then, MediaMonks and MightyHive combined with more than 25 companies across Content, Data&digital media and Technology services. For a full list, please see the S4Capital website.
In August 2021, S4Capital launched its unitary brand by merging MediaMonks and MightyHive into Media.Monks, represented by a dynamic logo mark that features MightyHive's iconic hexagon. As the operational brand, Media.Monks underpins S4Capital's agility, digital knowledge and efficiency and is the next step in delivering on its foundational promise to unify Content, Data&digital media and Technology services.
Victor Knaap, Wesley ter Haar, Pete Kim, Christopher Martin, Mary Basterfield and Scott Spirit all joined the S4Capital Board as Executive Directors. The S4Capital Board also includes Rupert Faure Walker, Paul Roy, Daniel Pinto, Sue Prevezer, Elizabeth Buchanan, Naoko Okumoto, Margaret Ma Connolly, Miles Young and Peter Rademaker.
The Company now has over 8,800 people in 33 countries across the Americas, Europe, the Middle East and Africa and Asia-Pacific and a current market capitalisation of approximately £1.75 billion (c.$2.14 billion) and would rank in the FTSE 200. It achieved Unicorn status in a little over one year, unique in the advertising and marketing services industry. Sir Martin was CEO of WPP for 33 years, building it from a £1 million "shell" company in 1985 into the world's largest advertising and marketing services company with a market capitalisation of over £16 billion on the day he left. Today its market capitalisation is £10.8 billion, dropping into third place behind both Omnicom and Publicis for the first time ever. Prior to that Sir Martin was Group Financial Director of Saatchi & Saatchi Company Plc for nine years.