S4 Capita Merges with A Silicon Valley Marketing Firm

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A merger is the next best thing for many digital marketing companies as S4 Capital’s MediaMonks announced a $150 million merger with Silicon Valley’s biggest digital marketing agency. 

Founder of S4 Capital, Martin Sorrell announced its expansion, in which they acquiring Firewood, the largest advertising agency in Silicon Valley. Sorrell said that Firewood has a list of clients comprised of Silicon Valley’s finest. This merge is expected to help S4 Capital with its expansion goals of doubling the size of the company by 2021. 

MediaMonks was also acquited by S4 Capital in 2018 as part of the plan for a better, faster, and cheaper advertising solution, it’s partnering up with the digital agency, Firewood. 

Firewood digital agency

Founded by Juan and Lanya Zambrano in 2010, Firewood has grown to have headquarters in Silicon Valley and six more offices around the globe. The company’s 300 employees are focused on creative, strategy, planning, and performance media, and technology services. Firewood digital agency has worked with Google, LinkedIn, Airbnb, Waze, and other platforms in the past.

The digital agency makes an embedded model for its clients. These models act as an extension to its clients’ marketing team. 

S4 acquisitions 

S4 Capital has been busy looking out for companies to merge with to accelerate their plans of expansion, and the acquisitions don’t stop with Firewood and Mediamonk. The company acquired the programmatic solution provider MightyHive last year. In April this year, S4 Capital acquired the Amsterdam-based video production Caramel Pictures and ProgMedia which is a Brazilian programmatic advertising specialist. 

Furthering their expansion with Firewood digital agency, Sorrell said that this merger is an opportunity to create a new era in communications services. With Firewood’s client list, the S4 Capital family is very much excited about the many things they can do together. This deal increased S4’s employee number to 1,800 in 23 countries and a market cap of $600 million. 

Despite the merge, Firewood will still operate under its own name and its office. The organizational structure will also be the same. Zambrano said that their company had several suitors due to their explosive growth but it was S4 that proved to be willing to take up their requirements. Firewood wanted to keep the culture of its company, diversify its clients, and enhance more opportunities for their employees. 

Firewood digital agency will be paid $112.5 million, in cash and in shares and will also be paid an additional $37.5 million if the agency reaches its expected operating target this year. 

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