S4 Capital is beefing up its new-era digital model with design and experience hotshop Jam3, which is merging with its creative arm MediaMonks in a cash-and-equity deal. This is the third major deal S4 has completed this year; in January, Decoded Advertising joined MediaMonks, and Metric Theory became a part of S4’s data and media consulting agency MightyHive.
S4 Executive Chairman Martin Sorrell declines to characterize the deal as an acquisition, saying instead that Jam3 is “buying into” the S4 model. According to S4, all of its deals are 50% cash and 50% stock. So under the pact Jam3, which is estimated to have $22 million in revenue last year, becomes a stakeholder in S4. Specific terms were not disclosed.
As is the case with earlier deals, Jam3 will become part of MediaMonks, operating under a single P&L. Jam3 will bring MediaMonks’ employee headcount up to 4,600 from 4,400.
Jam3 is known for creative storytelling through its innovative use of technology. The company first made a name for itself in 2012 with an interactive documentary that allowed viewers to immerse themselves into the life of a bear in a Canadian national park. More recently, Jam3 helped reimagine Complex’s Complexcon, digitally for a post-COVID world, and also helped Adidas create a “Newstand of the Future” pop-up shop in 2019.