S4 Capital has struck a deal for tech services company TheoremOne, its first acquisition since Sir Martin Sorrell’s advertising start-up in late March revealed accounting issues related to its fast growth.
The London-listed company on Tuesday said TheoremOne would merge with its subsidiary MediaMonks, a Netherlands-based digital production company that Sorrell has used to merge with dozens of other companies.
Sorrell, a veteran advertising executive, is S4’s co-founder and the company’s executive chair.
MediaMonks has been at the centre of the advertising company’s issues, which the company has said are mainly related to revenue and cost of sales recognition.
Brady Brim-DeForest, chief executive at TheoremOne, which is based in Los Angeles, said the “entrepreneurial, growth-focused culture at S4 Capital” was one where he was confident the company’s team would feel “right at home”.
TheoremOne, which was founded in 2007, has clients such as American Express, AT&T and Starbucks and made $58mn in sales last year. S4’s acquisition of the company will add one so-called “whopper” account, meaning a client that generates more than $20mn in revenue each year.
Source: Financial Times