Intermarketing Agency has acquired smaller specialist digital agency Teabag in a six-figure deal.
The Leeds-based marketing business, which has turnover of more than £11m, secured Teabag’s staff and clients as part of a buyout agreed with the smaller firm’s management team.
Teabag was founded by Liam Grogan, Stuart Baker and Adam Blain eleven years ago. Last year, the niche digital business recorded around £750,000 in turnover.
Its 13 staff members take Intermarketing’s headcount to close to 100 and the company is looking to expand further in the coming months.
It comes three years after Intermarketing’s managing partners Jamie Allan and Steve Sowden completed a buyout of the business. Since then it has doubled the number of employees, increasing its client base, moved to new premises and extended its product range.
Intermarketing had a “long-established” working relationship with Teabag, and will build on its capabilities with the addition of its digital and motion experts.
“We‘ve been working for a few years together across projects for our clients so the buy-out was a logical move and beneficial to all,” Mr Allan said.
“Digital now impacts on nearly every campaign we run for our clients and this expansion has been a key part of our strategy.”
Mr Sowden said the firm is “delighted” Teabag’s former owners Mr Grogan, Mr Baker and Mr Blain have committed to staying with Intermarketing along with the company’s other staff.
Commenting on the deal, Mr Grogan said: “The move provides an opportunity to build on our achievements and become part of a wider, integrated and established strategic marketing agency, working with a greater mix of clients and some leading global brands.
“We firmly believe that Intermarketing Digital will offer our existing and new clients the best digital and motion services in the business.”
Intermarketing was formed in 1989 and delivers marketing for a range of clients including adidas, Parkdean, La Redoute, RSA and Shop Direct.