- Advertising company S4Capital said it had agreed to acquire tech-focused digital marketing agency Firewood in a deal that valued the target at $150m.

S4Capital also said it would raise £100m from a share issue to help fund the $77.5m cash component of the deal and potential additional acquisitions.

New shares in S4Capital would be issued at 142p each, representing a 1.4% premium to their closing price on Monday.

Firewood was an international digital marketing agency built on extensive partnerships with some of the world's best-known technology brands, and the largest independent agency in Silicon Valley.

It would be acquired by S4Capital's MediaMonks unit.

'This merger is a further step in creating a new era communications services leader,' S4Capital executive chairman Martin Sorrell said.

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