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Paul and Justin Yates, the brothers that founded internet search marketing agency Just Search in 2003, have sold the Adlington-based business to Sweden’s Getupdated for £8.8m.
The huge deal will see Paul, currently MD at Just Search, move up to the position of CEO, while Justin, the firm’s sales director, will continue in the same role on a pan-European basis. Paul will also step up to join the board of Getupdated, while both will receive shares in the public limited company that will see them become the third biggest shareholders overall, with a 6% stake. Speaking to How-Do about the deal, Paul Yates (above left) relayed that the sale had come earlier than expected. He revealed: “We really had no intention of selling the business just yet, but the deal from Getupdated provided everything we were looking for. “Basically Just Search will carry on operating as a separate brand, with the same people at the helm, but Getupdated will fund our growth moving forward. They can see what we’ve achieved, and the reputation we now have in the UK, and they want to build on that rather than simply swallowing it up.” Yates imparted that the first tangible sign of Getupdated’s investment in Just Search’s growth would be the opening of a new Dublin office within the next few months. This, he noted, was all part of the new joint entity’s desire to “push forward and grow to be the number one search marketing firm globally.” The deal follows a phenomenal growth surge from Just Search, which has expanded by 100% in the last year alone. It is forecast to turnover £5.5m this financial year, with a mouth-watering profit margin of £3m. This has apparently been achieved by agreeing yearly contracts with clients, 90% of whom are said to renew their business with the firm. Getupdated itself has grown 300% in the last year, mostly through the 12 acquisitions the firm has made. The payment for Just Search is being made in two tranches, with the first 90m Swedish Krone slice being followed by a 25m SEK portion after 12 months (an earn out based on profits from the firm). Just Search currently employs 31 staff at its HQ near Macclesfield and five at a sales office in London.
http://www.justsearching.co.uk/
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