Sorrell’s ‘coconut ripening’

FIRST it was a mere ‘peanut’. But Sir Martin Sorrell now says his new ad agency is morphing into ‘a coconut, growing and ripening’ after another takeover.

The tycoon’s company, S4 Capital, confirmed its £117m merger with US firm Mightyhive following weeks of speculation.

It is the second major deal struck by Sorrell, 73, since he walked out of WPP amid claims he had used company money to pay for a prostitute – allegations he denied. And in a wink to his former employer, Sorrell appeared to suggest his new outfit was gaining ground. He had claimed S4 was ‘a peanut in comparison’ to WPP when asked if it posed a challenge.

But yesterday he quipped: ‘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.’

The acquisition of San Francisco-based Mightyhive comes after Sorrell’s S4 previously triumphed against WPP in a highprofile battle to buy Dutch firm Mediamonks. Sorrell said Mediamonks would open a San Francisco office as well and focus on winning business from big tech companies, including Apple, Microsoft, Google, Facebook, Adobe, Salesforce and Oracle.

The Mightyhive deal is expected to complete on December 24, S4 said.

As part of the deal, S4 – which floated in September, raising £51m including a £40m investment by Sorrell – will set up a £3.9m incentive scheme for Mightyhive staff and pay them the same amount in restricted cash bonuses after the deal.