FRP Corporate Finance advises Digital Sports Mgmt on YMU merger

25 October 2022 Consultancy.uk

British talent agency YMU has announced its expansion into the gaming and sports market, acquiring Digital Sports Mgmt for its sports division. Advisors from FRP Corporate Finance assisted the sell-side of the merger.

Launched by Rob Wadsworth and Tom Henderson in 2016, Digital Sports Mgmt (DSM) is a communications and marketing firm specialising in digital entertainment. DSM has previously worked with clients including EA Sports, Sorare, Avery Dennison and Warner Bros, as well as representing gaming talent such as Danny Aarons, ShaunaGames, and AJ3.

This attracted London based talent management agency, YMU – which has a roster of clients in the sport, music and entertainment industries. Looking ahead, having sold a majority stake to YMU, DSM will now work to expand YMU’s services to include esports consultancy, sports marketing, sponsorship brokerage, licensing, and live production.

YMU CEO, Mary Bekhait, said, “We are thrilled to join forces with Digital Sports Mgmt and diversify our sports division into gaming and esports, marketing activation, and sponsorship. In Rob and Tom, we have found two phenomenal, industry-leading executives and I’ve been incredibly impressed with what they have built with Digital Sports Mgmt. Entering into gaming and esports has been one of YMU’s key strategic objectives and with the acquisition of DSM I am pleased to be able to offer further, exceptional expertise and bespoke knowledge to our current and future global sports clients.”

FRP Corporate Finance advised DSM’s shareholders on the deal. Led by Partner Mark Farlow, Director Bilal Hasan and Manager Nick Wright, the company’s corporate finance team provided sell-side support to DSM ahead of the merger, advising on market landscape as well as the deal structure.

Bilal Hasan, Director at FRP Corporate Finance, commented, “DSM is a unique asset, which is operating in an exciting fast-growth sector. In the short space of five years, it has established itself internationally while developing an impressive client base. Demand for niche social media and digital marketing assets is strong and we expect this to hold despite the macro headwinds. With this in mind, we expect to see the firm continue to go from strength to strength in its new partnership with YMU Sports.”

The deal represents the team’s fourth transaction in the sector in the past 15 months. Notable deals include advising on the sale of a significant stake in Goat, Livingbridge’s acquisition of Jungle Creations and Lifecycle Marketing’s acquisition of Emma’s Diary. This heritage positioned FRP well to take care of the deal on behalf of DSM, according to the firm’s Co-founders and Directors.

Henderson and Wadsworth added, “The team at FRP Corporate Finance provided invaluable advice and support throughout the process. When issues arose, as they do in every deal, they guided us expertly and helped us achieve our ambitions.”