Engine, the marketing services group that own WCRS, has sold a 15% stake to a pre-IPO investment fund Loudwater Trust, as part of its plans for further acquisitions in the new media and PR sectors.
The move comes as Engine prepares to relocate to a new 60,000 sq ft central London office next year. The new office will house all of Engine’s partner companies including WCRS, Dave, Personal, Woo, AS Biss, Slice, Huge Entertainment, Karen Earl Sponsorship and Altogether Digital.
The deal with Loudwater involves new equity and the redemption of founder and vendor shareholder loan notes. Richard Wyatt, chief executive of Loudwater, will join the board of Engine Group.
Peter Scott (pictured), chief executive of Engine Group, adds: “This is a very exciting time for Engine, as this refinancing deal gives us the scope to meet our medium-term expansion plans while leaving head room for further growth.
“In addition to the proposed office move, we are constantly looking for new partners in high-growth areas of the marketing services and communications industries that will add additional strength to our integrated offering.”
Engine posted revenues of £25.7m in 2006 and proforma revenues of £40m are forecast for 2007. It employs 350 staff in nine partner companies.