The Works creative ad agency has been acquired by digital services consultancy RXP. The Works’ co-founders Damian Pincus and Kevin MacMillan explained why they decided to sell:
“We need to remain ambitious and view the current state of play as a brilliant opportunity – because our vision for The Works has always been about building a creative brand and culture for the long term.
“But to take advantage of the opportunity that lies ahead, we need to be set up better than any competitor. Seeking the backing of a young and ambitious digital transformation company out of Melbourne provides that. It’s more than just future proofing for our people and our culture, it’s leading the way.”
In announcing the deal to the ASX, RXP said The Works purchase will be funded by a mix of capital raise, existing cash reserves, and debt facilities.
Reports indicated that RXP will pay $25m upfront with The Works partners able to be paid more under an earn out agreement.