‘It’s less about the money… more about succeeding’: How The Works and RXP will come together
RXP may be paying up to $33m for The Works, but the founders of the agency tell Mumbrella’s Abigail Dawson that their reason for selling is all about cultural fit
This week saw The Works become the latest independent agency to sell.
The acquirer came from leftfield – ASX-listed technology company RXP Services.
The deal values the 15-year-old agency at an upfront price of $25m, which could rise to $33m, depending on its performance over the next two years.
According to the ASX announcement, The Works is budgeting a $16.5m turnover and $3.9m profit for the current financial year.
I’m pretty sure the shareholders of RXP would be seeking a healthy financial return on investment. Not sure what “succeeding” is
So The Works makes twice the annual profit of The Monkey’s. Who would have thought?!
A great agency doing great work and I think a great acquisition for RXP. Makes very sound strategic sense so it should definitely make 1+1=more than 2.
Douglas wasn’t a founder, he came along some years later