Next Fifteen Communications Group has conditionally agreed to acquire Engine Acquisition Limited (Engine UK) for £77.5m. Engine UK is a broad-based digital transformation, communications and creative business with approximately 600 staff and 300 UK and international clients. The acquisition will be funded from the companys debt facilities and the proceeds of a proposed placing of new ordinary shares in the Company, raising up to £50m.

In the year ended 31 December 2021, Engine UK increased its net revenue by 18 per cent to £88.6m and generated adjusted EBITDA of £11.8m, representing an acquisition multiple of approximately 6.7 x 2021 adjusted EBITDA.

Engine UK’s business is comprised of three divisions: Communications, Creative and Transformation, providing a range of services across business transformation and client engagement campaigns. Its clients include AstraZeneca, E-ON, Sky, the Home Office and the Ministry of Justice.

Next 15 said the acquisition will add significant capabilities for it to offer growth consultancy services to UK and international clients. It also said it would accelerate its Business Transformation ambitions, adding significant scale and bringing new capabilities in the public sector, as well as an experienced management team

“We are delighted to welcome the people and clients of Engine UK to Next 15,” said Next 15 CEO, Tim Dyson. “Acquiring this broad-based digital transformation, communications and creative business fits well with our track record and strategy of adding growth businesses which then contribute to our target of doubling the size of our business in the next three to five years. Its three businesses are home to great talent and strong client relationships and provide multiple opportunities to expand and further apply our growth consultancy services.

“We look forward to working with the management teams, staff and clients of the three businesses at Engine UK and the other industry leaders within Next 15 to execute our growth plan built on our model of independence, incentives and investment.”