The former WPP chief executive, who left the holding group in April, has this morning announced to the stock market the acquisition of S4 Capital, a newly set-up company, by publicly-listed firm Derriston Capital.
The new organisation will be renamed S4 Capital, with the intention of exploiting “significant opportunities” in technology, data and content, according to
a statement to the market.
S4 Capital said it is already in “preliminary discussions” regarding potential acquisitions.
Sorrell, who becomes executive chairman of the London-listed company, has contributed £40m to the launch of S4 Capital, with a further £11m coming from institutional and other investors. The firm recently completed a £51m equity fund raise, and has received non-binding letters of support for more than £150m in further funds.
Alongside Sorrell, Sky Bet chairman Paul Roy and former HSBC Investment Bank managing director Rupert Faure Walker have joined the business as non-executive directors.
“S4 Capital is a company that aims to build a multinational communication services business focused on growth. There are significant opportunities for development in technology, data and content. I look forward to making this happen,” Sorrell said.
The method of launch – by seizing control of a publicly-listed firm and using it as a shell for acquisition – closely follows the approach used by Sorrell to acquire and develop WPP as an advertising holding company.
Sorrell has been allowed to launch S4 Capital as he did not have a non-compete clause in his contract at WPP.