S4 Capital Buys to Develop Tech Services Offer

Sir Martin Sorrell's S4 Capital is back on the acquisition trail despite its accounting troubles. TheoremOne, which provides software engineering and design for digital transformation, is merging into the company to form the hub of a new Technology Services offering.

S4, formed as a digital advertising and marketing services company in May 2018, is now adding Tech Services to its existing practice areas, Content, and Data & Digital Media. TheoremOne employs around 370 people, more than two thirds of them in North America, and will 'continue to operate autonomously', with its leadership remaining in operational control, led by CEO Brady Brim-DeForest. Founder William Jessup will continue as Head of Services and David Kullmann as Head of Staffing and Embedded Teams, with the team reporting to S4's Executive Committee. The firm is headquartered in Los Angeles and employs engineers, designers, technologists, researchers, strategists and advisors.

The deal promises TheoremOne access to new capabilities in media, content, data and analytics, including the digital experience specialists Media.Monks. Brim-DeForest comments: 'We wanted a partner that could serve both as an accelerant for our growth and that was passionate about helping us disrupt the technology consulting ecosystem - joining forces with Media.Monks and S4Capital means we'll be taking the field with some of the best talent in the world'.

Sorrell says the 'intersection of Marketing, Sales, and Information Technology' continues to be a 'key topic' for brands and C-Suite execs, adding: 'We at S4Capital are building a genuinely integrated offer for our clients comprising best-in-class technology services combined with content and data&digital media expertise. We are delighted to welcome Brady, Will, David, and their colleagues - their vision and ambition will no doubt be a great fit for us'.

With nearly thirty companies now acquired, S4 has more than 8,800 people in 33 countries across the Americas, Europe, the Middle East and Africa and Asia Pacific and a current market capitalisation of c.£1.75bn. The group's share price has tumbled since March when it twice postponed its annual reporting. This week it emerged that the company has cancelled annual bonuses for Sorrell and the other executive directors, while former CFO Peter Rademaker has stepped down from the board. A recent expose in the Sunday Times reported that 'chaotic accounting' had 'engulfed' Sir Martin's 'empire', with its rush to add 'Whopper' clients (more than $20m revenue) chasing growth too hard for financial structures to adapt and cope.

Web sites: www.theoremone.co and www.s4capital.com .