MSQ strikes new private equity deal to boost expansion

International creative and technology agency group MSQ has been given a major boost after being acquired by international private equity firm One Equity Partners in a move designed to accelerate its international expansion.

OEP will now become the leading shareholder, with MSQ’s senior management and existing private equity investor, LDC, reinvesting as minority partners.

The deal will allow MSQ to boost its growth strategy, particularly in the USA and Europe where OEP has a strong presence.

This will be delivered through a continued emphasis on acquisitions and organic growth, a key driver in MSQ more than doubling its revenues over the past four years to more than £125m. A number of potential add-on acquisitions have already been identified and are under evaluation.

The investment will also allow the group to build out its data-driven and tech-enabled model, which, combined with its creative capabilities, provides clients with end-to-end solutions, in today’s increasingly digital platform world.

Since 2019, MSQ has grown EBITDA from £6m to in excess of £20m, made five acquisitions, rolled out its multi-disciplinary offering internationally and doubled its team to 1,200 staff working across America, Asia and Europe.

It has also added senior hires and attracted major new clients such as Booking,com, The AA, Zalando, Vitality, CFA Institute, Reckitt and Akzo Nobel to its portfolio.

MSQ agencies include MBAstack, The Gate, Brave Spark, Elmwood, Freemavens, MMT Smarts, Miri Growth, Stein IAS, and Walk-In Media.

MSQ chief executive Peter Reid said: “It’s been a highly successful four years at MSQ and there is huge potential and ambition to do more to build on our capabilities and footprint to enhance existing client relationships, attract new business and retain, develop and grow our team.

“The structure of the deal and the players involved will give us access to greater resources to extend our global offering, invest in talent, technology and services and position ourselves as the leading next generation partner for the world’s leading and most ambitious brands through the continued successful integration of insight, data, technology and creative.”

OEP senior managing director Dr Jörg Zirener added: “MSQ’s business model and strategy provides a fantastic platform for future growth and we look forward to working with the excellent team there in accelerating the vision of creating a leading international digital, tech and creative group.

“With our experience and successful track record in buy-and-build transactions as well as our international set-up, we feel that we are well positioned to help management of MSQ to develop the company into one of the leading global digital agencies.”

Last month MSQ announced it has achieved B Corp certification across the entire group, demonstrating its commitment to be a force for good and belief that people and the planet are as equally important as profit.

MSQ and LDC were advised by Houlihan Lokey and Squire Patton Boggs, with legal advice also provided to MSQ through Browne Jacobson.