S4 Capital has completed a merger with Mightyhive, in a blow to advertising giant WPP (LON: WPP).
WPP’s former boss Sir Martin Sorrell announced the merger’s closing today, whilst also revealing three new board members.
“S4 Capital is now in a position to compete for comprehensive digital-first mandates at the highest level and is beginning to succeed meaningfully,” said Sorrell.
Peter Kim, the MightyHive Chief Executive, and Chief Operating Officer Christopher Martin have joined S4 Capital’s board. The boss of Stanhope Capital, Daniel Pinto, will also join the group’s board.
Sorrell was ousted as the WPP boss earlier this year following misconduct allegations.
“Obviously I am sad to leave WPP after 33 years. It has been a passion, focus and source of energy for so long. However, I believe it is in the best interests of the business if I step down now,” he said at the time.
Since leaving the group, Sorrell has founded his own advertising agency, S4 Capital.
S4 Capital’s acquisition of Mightyhive was worth $150 million (£117 million) and was the group’s second deal.
“This represents a significant step in building a new age, new era, digital agency platform for clients,” said Sorrell about his first deal at S4 Capital.
“The merger with MightyHive marks an important second strategic step for S4 Capital. The peanut has now morphed into a coconut, and is growing and ripening.”
“Clients of all kinds want services delivered faster, better and cheaper, by more agile and responsive organisations,” he added.