ASX-listed digital consultancy RXP Services Limited has announced that, in line with its digital strategy, it has acquired independent creative agency The Works.
RXP said in a statement to shareholders that the acquisition is expected to be EPS accretive in FY18 by over 10 per cent, with synergies of $1.5 million in FY18. The purchase is to be funded by a mix of placement, existing cash reserves, and debt facilities.
With approximately 85 per cent of revenue derived from NSW, the acquisition further enhances RXP’s presence in the state.
Furthermore, RXP’s statement noted that the acquisition will dramatically strengthen its end-to-end delivery capability for its clients by connecting brand strategy and creative to the company’s existing client work.
“This will ensure a deeper level of engagement with current clients, as well as representing higher value work and significant cross-sell revenue opportunities,” it said.
Commenting on the acquisition, RXP CEO Ross Fielding said: “The acquisition of The Works just made sense. It is a really strong fit with RXP’s evolving business model as we continuously seek to grow our digital services offering.
“The future is all about digital, and the acquisition of The Works significantly enhances our capabilities in this area.
“In addition to extending RXP’s already strong digital customer experience delivery capability, it also increases our presence in NSW and further diversifies our customer and revenue base which is crucial for a sustainable business.
“We strongly believe this acquisition will allow a deeper level of client engagement and, therefore, higher client satisfaction. My team and I are very excited about this acquisition and we expect to create some digital waves in the industry.”
Damian Pincus (pictured above, right), co-founder of The Works, said: “In RXP we have found a future focused, innovative and culturally aligned partner at a time when the business of marketing communications continues to undergo significant disruption.
“Clients increasingly want to engage with consumers at a deeper and more personal level and as digital transformation specialists RXP have a wealth of experience in this area.
“This is an exciting partnership and will complement our core brand strategy and creative offering enabling us to further deliver for our clients and people.”