Croud Accelerates Growth with ECI Investment
Deal News | Nov 05, 2024 | B Daily
ECI Partners, a private equity firm, has acquired a majority stake in digital marketing agency Croud, which is set to accelerate its growth through both acquisitions and organic expansion. Croud, founded in 2011 by Luke Smith and Ben Knight, is a full-service agency with multiple international offices. They boast high-profile clients like Selfridges, Audible, and Nespresso. The ECI investment leverages Croud's extensive network of over 2,900 specialists, known as 'Croudies', to drive innovation and expand market reach. This acquisition is backed by a £77.6 million club loan from OakNorth Bank, joined by HSBC, Investec, and Barclays, which is expected to catalyze Croud's position as a leader in tech-enabled marketing. Rory Nath, investment director at ECI, praises Croud's digital-first strategy and its standing as a Best Place to Work, highlighting its potential to outpace market trends. Stuart Blair from OakNorth notes Croud's success in a challenging market, suggesting that ECI's involvement provides exemplary support.
Sectors
- Digital Marketing
- Private Equity
- Financial Services
Geography
- United Kingdom – Croud is based in the UK, which is also where ECI Partners is likely headquartered, and several participating banks are based.
- United States – Croud operates offices in the US, a major market for digital marketing services and likely a focus area for expansion.
- Middle East – Croud has offices in the Middle East, indicating growth potential and present market operations in this region.
Industry
- Digital Marketing – Croud operates as a global digital marketing agency, offering full-service marketing solutions to clients like Selfridges and Audible.
- Private Equity – ECI Partners is a private equity firm that invests in companies like Croud to help accelerate growth through financial backing and strategic guidance.
- Financial Services – The acquisition includes financial players such as OakNorth, HSBC, Investec, and Barclays, which provide funding support to Croud.
Financials
- 77.6 million – The loan amount arranged to finance the acquisition of Croud, involving several financial institutions.
- 34 million – An initial loan amount provided in May before the acquisition was completed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Croud | Target company | Company | A digital marketing agency founded in 2011 with a unique model leveraging a network of specialists. |
| ECI Partners | Bidding company | Company | A private equity firm investing in Croud to accelerate its growth and market reach. |
| Luke Smith | Co-founder | Person | Co-founder of Croud, he plays a key role in steering the company through the expansion phase. |
| Ben Knight | Co-founder | Person | Co-founder of Croud, involved in strategic decisions during the company's expansion. |
| OakNorth | Financial advisor | Company | Provided a significant portion of the loan facilitating the Croud acquisition. |
| HSBC | Financial advisor | Company | Participated in the funding package for Croud's acquisition. |
| Investec | Financial advisor | Company | Part of the consortium supporting the acquisition with financing. |
| Barclays | Financial advisor | Company | Involved in the financial backing for the acquisition of Croud. |
| Stuart Blair | Director of debt finance at OakNorth | Person | Highlighted the strategic fit of the investment and financial support for Croud. |
| Rory Nath | Investment director at ECI | Person | Provided insight on ECI's strategic interest and investment vision with Croud. |