Octopus backs Reading Room as online spending soars
01/04/2005 - London
Octopus backs Reading Room as online spending soars
Reading Room, one of the UK's most respected digital communications agencies, has attracted a significant £1 million investment from Octopus, a leading fund manager and private equity investor. The investment will be used by Reading Room to expand its London and regional presence as well as to fund potential acquisition activity.
The investment is a major endorsement for Reading Room's senior management team and its next generation digital communication offering. Reading Room, founded and managed by Simon Usher and Margaret Manning, has built an excellent management team mainly through internal promotion. Neil Davis, Group COO, Sarah Vick, Project Director and Kris Croucher, Business Development Director are being joined by non-executive chairman Andrew Brode, executive Chairman of Aim Listed RWS Holdings PLC and ex Managing Director of Wolters Kluwer (UK) PLC.
The global digital communications market is increasing rapidly. The UK's online growth is led by the explosive increase in online advertising which increased in the UK by 52 percent in the first half of 2004 compared to the same time period in 2003, reaching a half-year total of $429 million, according to the February Online Market Report by Starcom UK.
The additional funding puts Reading Room in pole position to exploit this opportunity by enabling it to further develop its product portfolio, build strategic partnerships and expand nationally. Additional staff have been recruited in London, Manchester and Sydney and a further UK office is being planned.
Joseph Bergin of Octopus and Reading Room board member said, "This is a fantastic investment for Octopus. The explosive growth of this industry, coupled with the endorsements from the current client base, means that the company is exceptionally well positioned. We believe that with this investment, Margaret and her team will build Reading Room into one of Europe's leading digital communications businesses".
Margaret Manning, CEO of Reading Room said "We are building a world-class team at Reading Room. A receptive market, great products, a great management team and excellent investors make for the crucial ingredients for our success. Octopus's investment is a major endorsement of Reading Room and its ability to deliver real value to its clients.
About Octopus:
Octopus Asset Management (www.octopusam.com) is a leading fund manager and private equity investor into fast growing SME companies. Octopus specialises in providing £1 million to £3 million of equity finance for management buy-outs and development capital for UK companies in transactions with an enterprise value typically up to £15 million. Octopus, set up in 2000, is one of the fastest growing fund management companies in the UK. The company is known for its innovative products and exceptional customer service. Octopus' latest fund launch (and the fund investing in Reading Room) was voted "New Venture Capital Fund of the Year 2004" in the Investor AllStars Awards.
Octopus Asset Mangement
E: JBergin@octopusam.com
T:020 7710 2816
