Sorrell buys Silicon Valley’s Firewood

Martin Sorrell’s S4 Capital has bought Silicon Valley’s biggest independent agency, Firewood, for $150 million in its latest deal to form a purely digital global advertising firm.

The world’s best-known advertising boss is building up the new venture following his departure from ad giant WPP, sealing deals for digital content that runs on platforms like Facebook and Google, and the automated placing of ads online.

Sorrell said digital growth was “on fire” and his focus on it meant he was currently involved in five large pitches.

S4 will gain access to Firewood’s client base in the United States, including Facebook, Google, LinkedIn , Salesforce and VMware.

S4 raised 100 million pounds ($123 million) through a placing to part fund the Firewood deal and to build up a war chest for future acquisitions. (RTRS)