NEWS6 May 2021

S4 Capital expands in Brazil

Data analytics Latin America M&A News UK

UK – Digital advertising and marketing services firm S4 Capital has agreed to acquire Brazilian digital performance agency Raccoon Group and merge the company with its analytics firm MightyHive.

Sir Martin Sorrell

S4 Capital said that the acquisition would expand the company’s data and digital media practice in Latin America. The terms of the deal have not been disclosed.

Raccoon Group was set up in 2013 by two ex-Google staff André Palis and Marco Túlio Kehdi, and has more than 450 employees. The company specialises in digital paid media, inbound marketing such as search engine and conversion rate optimisation, and IT and business intelligence.

The latest S4 Capital deal follow last year’s acquisitions and merger with MightyHive of Latin American data and analytics consultancy Digodat and Australian analytics firm Lens10, as well as data analytics and measurement consultancy Brightblue Consulting and boutique consultancy Orca Pacific.

Earlier this year, S4 Capital acquired data-driven performance marketing firm Metric Theory and Google marketing platform Datalicious Australia, both of which it also merged with MightyHive.

Martin Sorrell (pictured), executive chairman of S4 Capital, said: “Brazil is a crucial market for us at S4 Capital and one we have history in and love to work in, so we are delighted to welcome André, Tulio and their colleagues to expand our existing capabilities.”

Chris Martin, co-founder of MightyHive and executive director of S4 Capital, said: “Raccoon is a natural expansion of our data and digital media practice in Brazil.

"Welcoming André, Tulio and their colleagues to the family allows us to combine our existing capabilities with their performance media and data competencies to create a broad-based digital media offering.”

Palis, chief executive and co-founder of Raccoon Group, said: “We couldn’t be more excited to join forces with MightyHive and S4Capital. We can’t wait to collaborate with their existing services here and offer clients, talent and platforms a contemporary and differentiated partner.”