S4 Capital confirms tech merger after Covid-19 pushed ‘digital transformation’
Martin Sorrell’s S4 Capital has confirmed its brand Media.Monks’ merger with digital services firm Zemoga, to bolster its technology services across product design, engineering and delivery.
The deal forms part of yet another bout of expansion for the advertising company.
Sorrell earlier this week credited the Covid-19 pandemic with accelerating “the speed of digital transformation and disruption at consumer, media and enterprise levels,” which has pushed the agency into the top 125 FTSE companies.
Shares were lifted 2.13 per cent to 817p per share in the firm’s late-morning trading.
“Merging with a powerhouse like Media.Monks is a natural next step in the evolution of Zemoga as our complementary service offerings, client portfolios and our common approach to disrupting the industry make for an exciting future all round,” CEO and founder of Zemoga said in a statement.
Zemoga, which has offices across the US and Colombia, hosts a nearly 400-strong technology specialist workforce that help clients such as Sony and Bridgestone.
London-born Sorrell said the move will complete Media.Monks’ leadership team, as “entry into the technology services sector through Zemoga gives us the full capability to talk to the chief technology or information officer, as well as the chief marketing and chief sales officer. We now have the full set.”
It follows S4 upping its annual revenue forecasts after intake climbed 56 per cent in the first half of the year.
The company, just three years old, pulled in a revenue of £279.3m for the six months ending 30 April, an increase of nearly 100 per cent in comparison to the same period in 2020.