Tech-based advertising and marketing group Subsequent 15 is buying of Engine UK from Lake Capital within the US for £77.5m, £20m or so lower than Lake paid just a few years in the past. Subsequent raised £50m from shareholders to fund the deal. Engine made almost £12m ebitda (earnings earlier than plenty of prices, which might be misleading) final yr so the value appears to be like a steal.

Engine employs about 600 employees throughout three divisions: communications, artistic and “transformation.” Subsequent describes itself as a change specialist (however doesn’t everybody lately?)

Engine will merge with Subsequent company ODD underneath CEO Phil Fearnley. Fearnley is a completely paid-up member of the digerati, having labored on the BBC for over seven years, latterly on the myBBC digital programme.

Engine contains the previous WCRS, the fabled company based by Robin Wight, Ron Collins, Andrew Rutherford and Peter Scott. Scott led Engine earlier than the sale to Lake Capital. Engine shoppers embody Santander (under), E.ON, Sky, Cazoo, the Cupboard Workplace and Warburtons.

Subsequent CEO Tim Dyson says: “Buying this broad-based digital transformation, communications and inventive enterprise matches effectively with our monitor document and technique of including development companies that then contribute to our goal of doubling the scale of our enterprise within the subsequent three to 5 years.

“Its three companies are dwelling to nice expertise and robust consumer relationships and supply a number of alternatives to develop and additional apply our development consultancy providers.”

Subsequent 15, initially primarily based on PR, is one other of the digital first marcoms teams impinging ever extra strongly on the territory of the massive advert holding teams. Others embody Jellyfish and Croud (which is increasing within the America), MSQ plus the extra excessive profile S4Capital (Sir Martin Sorrell’s new enterprise) and David Jones’ BrandTech Group.

Inventive businesses, though nonetheless extremely worthwhile in good instances, might be delicate flowers too and it is going to be attention-grabbing to see if Engine prospers underneath Fearnley and his boss Dyson.

That is an up to date model of an earlier story.