Waracle acquires Screenmedia to boost digital product development

Scottish technology services company Waracle has formalised an agreement to acquire Screenmedia, a Glasgow-based design and software engineering agency, in a move aimed at enhancing its digital product development capabilities.

The acquisition merges Waracle's 145-strong team, known for its expertise in mobile app and digital product development as well as AI, with Screenmedia's award-winning team of 60 employees. This expansion increases Waracle's workforce to over 200 staff.

Waracle, which maintains offices in London, Edinburgh, Glasgow, and Dundee, is taking a strategic step to fortify its offerings in digital product development and AI, as the technology services industry increasingly prioritises artificial intelligence and its role in software development. "We are ready for the new wave of AI-enhanced, intelligent customer experiences," commented Chris Martin. "This is a strategic business decision to continue our growth. We reviewed what we needed to succeed going forward and this acquisition was a key part of the answer."

Chris Martin will serve as CEO of the new combined entity, while Kenny Shaw will transition away from day-to-day operations as Screenmedia integrates into Waracle.

Screenmedia has established itself through its substantial portfolio of work developing engaging user experiences across web and mobile platforms for prominent clients including Edrington, BBC, NHS, Channel 4, Next, and Honeywell. Notably, the agency boasts a Bafta for Best Interactive Media among its accolades.

Waracle, supported by growth capital investor BGF, serves a diverse client roster that includes Lloyds Banking Group, Royal London, ScottishPower, Roche, and Imperial College London. The acquisition, the financial terms of which remain undisclosed, enables Waracle to penetrate new sectors such as transportation, retail, and the third sector, which will complement its existing focus on health, energy, and financial services.

Kenny Shaw expressed enthusiasm about the prospects of the acquisition, stating, "Waracle has an impressive track record across regulated industries and our team at Screenmedia have a broad cross-section of sector experience. I think our new, combined organisation will make us a formidable force in Scotland's technology consultancy space."

Emphasising the importance of both organic growth and strategic acquisitions, Chris Martin indicated that this acquisition represents a significant milestone in Waracle's expansion plans. "We want to continue to employ talented technologists to solve our clients' digital problems and be able to service changing client needs across the UK by covering a wider range of technologies like service design, artificial intelligence and sensors," he said. "There are a lot of large, London-based technology consultancies attempting to grow their presence north of the border. We are doing the same in England and we have a strong and growing team there with ambitious plans for further acquisitions."

Martin added, "We want to capitalise on our reputation as an unrivalled mobile development partner and continue to take those problem-solving abilities across the UK, to make sure that technology challenges are being addressed by talented, local and engaged teams rather than near-shoring or off-shoring solutions."

This acquisition is expected to pave the way for continued growth for Waracle, which has evolved from a university spin-out 16 years ago to achieving revenues exceeding GBP £20 million.