Jaywing in talks to acquire York software business
Marketing agency Jaywing is closing in on an acquisition backed by its strongest new business pipeline in three years.
He is in talks to buy Midisi, a York-based marketing software development company. Jaywing is currently selling Midisi’s Decision software under a license agreement and is now looking to buy the company.
The software allows clients to automate the management of pay-per-click advertising.
Jaywing also revealed net revenue rose 16% in the year to March to £23.3m. This was helped by customer wins including Hallmark Cards, CityFibre and Skipton Building Society.
It will publish its annual results next month, before its general meeting.
Jaywing Managing Director Andrew Fryatt said, “The combination of double-digit revenue growth and a more efficient cost base has allowed us to increase underlying profitability, which gives us confidence for the coming year.
“While we remain cautious about the overall economic outlook, our new business pipeline is stronger than at any time in the past three years, and we continue to win new customers in the UK and Australia.”
Jaywing increased the headroom in its existing short-term funding facility by £1m, which it said was “partly in anticipation” of the acquisition being completed.
The company said the increase would cover initial transaction costs, with subsequent payments being funded by the company’s cash flow.
Jaywing is also discussing with its lenders the rescheduling of existing debt agreements.