Overview

• S4 Capital has confirmed receipt of a non-binding proposal from MSQ Partners and stressed that talks are at a very preliminary stage with no certainty of a transaction
• Any combination would be structured as S4 acquiring MSQ under UK Takeover Code rules, avoiding a change-of-control waiver requirement
• MSQ is majority-owned by One Equity Partners, which initiated discussions, and reports indicate New Mountain Capital has also expressed interest
• S4’s stock has fallen nearly 60% over the past year to around 21.2p, valuing the business at roughly £140m amid macroeconomic and accounting pressures
• The merger discussions reflect accelerating consolidation in the marketing services sector as firms pursue scale and AI-driven capabilities