Digital marketing group Latitude has been bought out of administration by its management team, following funding issues dating back to its aquisition in 2007. The Daily Telegraph reports that the move will write off millions of pounds in loans from Barclays as part of the ‘pre-pack deal’ to Latitude.
The bank provided a £10m loan to Vitruvian in 2007 to aid the acquisition of the company. Latitude management has team has now increased its stake in the company and has raised additional capital to accelerate the growth of the business.
The MBO deal has been backed by private equity firm Vitruvian Partners, which bought Latitude in December 2007 for £55million.
The company has over 90 members of staff with offices in both London and Warrington. The company manages campaigns in 157 countries and was recognised as the fifth largest company on the Sunday Times Tech Track 100 in September 2009.
The move follows the appointment on Monday of BDO as its administrators.
In a statement, Alex Hoye, chief operating officer of Latitude Digital marketing, explained: “This deal secures latitude’s ability to innovate and grow in a disruptive marketing. Marketing spend online surpassed TV for the first time in the UK this year – advertisers’ continued shift of expenditure to digital services provides growth opportunities for firms like Latitude in any economic environment. We share a vision with our investors to take the business forward, building on investments we have made in 2009.”
Commenting on the investment Ian Riley from Vitruvian Partners, said; “The marketing services sector has had a difficult time in the last 12 months. However, Latitude is a market leader and innovator with a talented management team. Vitruvian remains supportive of Latitude’s strategy.