British private equity firm Charterhouse Capital Partners (CCP) has acquired London-based sports marketing group Two Circles.
The deal, which is expected to be closed in ‘the first quarter of 2024’, will see Two Circle’s CEO and co-founder, Gareth Balch, continue to lead the data-driven business alongside the current management team.
The four-time FEVO Sport Industry Awards Agency of the Year winner had been owned by Bruin Capital since 2019. During its time as majority investor, the US investment firm has seen revenue growth of over 450% and opened new offices in Los Angeles, Paris and Melbourne – joining locations in London, Bern and New York.
In the last four years Bruin Capital has also overseen acquisitions of premium sponsorship sales agency TRM, ticketing specialist SportsInk, technology specialist Codeware, and creative content agency LiveWire Sport.
The new agreement is thought to be valued at around £250m, according to Sky News.
“At Charterhouse we identify technology-enabled services firms with highly differentiated expertise and back their management teams to become global leaders. Two Circles was a standout opportunity because of its data-driven focus, resilient profits, and growth in every year since it was founded in 2011.“
Charterhouse Partner, Chris Warren
Two Circles, which focuses on a data-driven approach to helping clients reach audiences effectively, boasts an impressive client roster that includes the NFL, the IOC, International Cricket Council, LA28, Formula 1, Premier League, UEFA and FIFA.
Charterhouse Partner, Chris Warren, commented,“At Charterhouse we identify technology-enabled services firms with highly differentiated expertise and back their management teams to become global leaders. Two Circles was a standout opportunity because of its data-driven focus, resilient profits, and growth in every year since it was founded in 2011.
“In a rapidly changing media landscape, sport has the potential to become more popular and valuable than ever before. We believe Two Circles is emerging as the first digitally native global sports group and will lead the next era for the sports industry to help its clients navigate the changes ahead and fulfil their potential.”
Bruin Founder, George Pyne, added, “This was a textbook collaboration and now a terrific outcome for everyone involved. We can’t be more thrilled for Gareth and the Two Circles’ team. The company’s growth, global expansion, and diversification over the last four years is a masterclass in value creation. Factor in the sports industry pause for COVID, and the performance was astounding. We’re proud to have played a meaningful role in all of that and to deliver against a bold vision for our investors.”
Gareth Balch, CEO and co-founder, Two Circles, said, “We are immensely grateful to George Pyne and the team at Bruin. They are brilliant people and have been brilliant partners.
“Charterhouse’s interest in our business reflects the commitment our clients have made to embrace a fan-focused and technology-enabled future. We will continue to work with our clients to harness the possibilities of digitisation and technology to grow the value of sport while nurturing the spirit and heritage that attracts hundreds of millions of fans and players to the games, teams and competitions they love. This partnership with Charterhouse will enable Two Circles to do this in more places worldwide and importantly, to collaboratively identify and invest in the capabilities sports needs to thrive.
“I am incredibly proud of our brilliant team for achieving this partnership with Charterhouse. Our focus is on becoming the best business we can be, and we want to build a better future for the sports industry. This moment is simply an affirmation of our constant desire for improvement. Sport is set for a golden era and we can’t wait to be part of it.”
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