Ingenious Corporate Finance has advised the shareholders of ilG Digital Ltd (''ilG''), the UK's leading independent specialist digital communications agency, on a transaction with ECI Partners (''ECI'') which values the business at over £45 million. Ingenious advised ilG and its shareholders on strategic options for the business and led the negotiations and structuring of the management buy-out which realised significant value for exiting shareholders whilst allowing ilG to retain its independence.
Management will retain a significant stake of approximately 40% in the business. The transaction will also provide the company with access to additional capital to help management fund their strategic plans for further growth.
ilG consists of four divisions: i-level, the largest independent digital media planning and buying business in the UK; Generator, a specialist web usability and web conversion consulting business; Premier Affiliate Network (PAN), a specialist affiliate network; and Jam, focused on social networking.
ilG was founded in 1999 by Andrew Walmsley and Charlie Dobres. It now turns over in excess of £100 million of online media expenditure across display advertising, search marketing, and affiliate management. Its current clients include; the COI, Orange, William Hill, Specsavers and Sony.
ECI is one of the longest established private equity groups in the UK, specialising in buyouts, buy-ins and development capital deals valued between £10 and £150 million.
Simon Nicholls, Managing Director, Ingenious Corporate Finance, said:
''We are pleased to have advised ilG and its shareholders on this transaction which underlines our credentials in the digital marketing sector, one of the fastest growing and most exciting sectors of today's media world. This is the fourth transaction we have completed in this sector in the last 12 months having advised The Search Works on its sale to TradeDoubler for £56 million and Engine on the acquisitions of DC Interact and Digital Public.
With the support of its previous shareholder base, including venture capital firm Beringea, i-level has established itself as the largest independent digital media agency in the UK. As such, it represents a compelling opportunity for a private equity firm such as ECI to back a first-rate management team and acquire a leading position in this fast growth market. For i-level and its shareholders, the transaction now achieves three key objectives: firstly, it restructures the shareholder base and realises significant value for shareholders; secondly, it retains i-level's independence and thirdly it provides access to further funding for the business to help management realise their ambitions for future expansion, including acquisitions and entry into new international markets.''
David Pattison, Chief Executive Officer of ilG, said:
''We are delighted with the deal that Ingenious has put together for us with ECI. Their in-depth knowledge of our sector enabled them to put options on the table for us and they have provided expert and focused advice on assessing these options and structuring a transaction that meets the objectives of our shareholder base and strongly positions the business itself for continued growth.''
Simon Nicholls, Managing Director; Khurram Farooq, Senior Associate; and Laura Maddison, Associate, acted on the transaction for Ingenious Corporate Finance.
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About Ingenious Corporate Finance
Ingenious Corporate Finance is an independent, client-driven, corporate finance adviser focusing on the media, entertainment and communications sectors. Ingenious advises corporates, privately-owned companies, financial institutions and private equity investors on value-enhancing strategies across a wide range of transactions, including mergers and acquisitions, disposals, LBOs, IPOs, private placements and restructurings. Ingenious Corporate Finance is a division of the Ingenious Group.
Ingenious Corporate Finance
Simon Nicholls / Khurram Farooq
Tel: +44 (0)20 7319 4000
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Andy Berry / Jason Nisse
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