Next 15 takes controlling interest in IPO advisory firm BCA

Next Fifteen Communications has acquired a controlling interest in technology-focussed capital markets advisory business Blueshirt Capital Advisors (BCA), it announced on Tuesday.

The AIM-traded firm said that in June 2016, its Blueshirt agency and its management team agreed to create a separate, complementary business called BCA, which would play a “much broader” initial public offering (IPO) advisory role for its technology clients than Blueshirt had historically played.

Since then, BCA had expanded its pre-IPO work to help companies maximise the value of their businesses.

The paths to accessing public markets had evolved, Next 15 claimed, particularly in the last 18 months.

“Already a leader in traditional IPOs in the technology sector, BCA has established a leadership advisory role in SPACs and direct listings,” its board said in a statement.

“BCA has played a key strategic role in many of the largest and most significant transactions in the technology sector that have been publicly announced to date, both in the US and internationally.

“BCA’s work is highly synergistic to that of Blueshirt as the combined companies offer clients a smooth path from life as a private company to the critical investor relations services required of public companies.”

Next 15 initially owned 20% of BCA, and as part of the shareholders’ agreement, it had the option to increase its shareholding from 20% to 51% in 2021, which it had now exercised.

It still had the option to increase its shareholding in BCA to 80% in two years’ time.

For the year ended 31 December, BCA reported net revenues of $4.1m and an operating profit before tax of $2.8m.

Next 15 would consolidate the financial results of BCA from 1 May, with a 49% minority interest, and BCA to be included in its ‘business transformation’ segment.

At 0930 BST, shares in Next Fifteen Communications Group were down 0.91% at 868p.