UK based firm, Engine has obtained funding for which it plans to spend in investments in Brazil, the US and China. Based in London, the marcoms agency reported it had secured around 62.5 million pounds worth of funding and will undertake increased investments to bolster its offering both in the UK and internationally.

The firm offers a wide range of services such as brand advertising, social media, lobbying, brand consulting, search engine and media planning. At the beginning of this year, the Engine group launched an insight and research unit named Engine Decisions. It is a business that utilizes proprietary methods that combine social and behavioral psychology, computer simulation of social interaction, and neuroscientific observations, to provide clients with an analysis of why and how consumers make choices.

Engine’s funding was spearheaded by United States based equity firm HIG Capital. The arrangement will see the American firm become a shareholder of Engine. HIG Capital will invest about 32.5 million aimed at funding Engine’s future growth and expansion and subsequently create liquidity. In turn, Engine will have the option to draw on an additional 30 million pounds over the coming one to two years.

Peter Scott, Engine joint chief executive and chairman said the firm is currently on an all out quest for investments and is hungry for capital. According to him, the firm has some “interesting development plans internally” and can’t wait for the two years to raise fresh funds for its undertakings. However, with the coming on board of the US firm, Engine expects to accelerate its plans to turn the group international.

That would entail undertaking increased investments in terms of mergers, acquisitions in key growth areas such as Brazil, he said. The Engine group generated revenues of £59m last year. As well as expanding into the new markets, Engine is also looking to strengthen the company’s position in the UK and explore possibilities in Europe.

The European arm of US private equity firm HIG Capital invested the 62.5 million pounds (€71.4m) in the UK communications firm Engine Group to allow it to expand into USA, China and Brazil. H.I.G. Capital is a leading global private investment firm with over $8.5 billion of capital under management. H.I.G.'s family of funds includes private equity, venture capital, distressed debt, real estate and public equities.

15 Oct 2010