Major UK agency Jaywing has just paid $2 million for a controlling stake in Australia startup Digital Massive, an online marketing business.
The deal for 75% of the business also includes an earn out of up to $2 million over the next two years, subject to the performance of Digital Massive.
It’s the second Australian investment for Jaywing, a specialist in marketing services, banking regulation and risk, and business intelligence, the first was Epiphany, a search marketing agency, in 2014.
The move signals Jaywing’s belief in the strength of the Australian market.
“Digital Massive is an exciting and fast growing company that has seen exceptional results since its launch in 2012,” says Rob Shaw, CEO of Jaywing.
He says Epiphany had been “a huge success both commercially and culturally” and hoped its success could be repeated through Digital Massive.
The Sydney startup was founded in 2012 and has recorded revenue growth over the past three years of over 300%.
Its founders, Chris Pittham and Tom Geekie, will both remain in the business under the new ownership structure.
Digital Massive has a broad range of blue chip, international companies among its clients, including Wedgwood, Waterford Crystal, Royal Doulton, Century 21 and Amber Tiles.
“We look forward to the opportunity presented by expanded services and expertise, specialist skills such as in data science and considerable business expertise,” says Digital Massive co-director Tom Geekie.
“The team can’t wait to get stuck in to a new chapter.”
Jaywing will merge its Australian operations with immediate effect with further brand development over the next few months.
From July 2020, Jaywing will have an option to acquire the remaining 25% of the startup for as much as $12 million for the entire business.