Sponge Swells with £1.5m Investment

Sponge chairman Alex MeislPrint and marketing services group St Ives has taken a 24 per cent stake in in mobile marketing company Sponge, for an investment of £1.5m.

Sponge, founded in 2002 by Alex Meisl and Dan Parker, is best known for its text-and-win campaigns for brands including Cadbury, Bird's Eye and - most famously - Walkers, which saw 6 per cent of the UK population entering to win an iPod Mini back in 2005.

"We have held off seeking investment for a long time," says Meisl, speaking exclusively to Mobile Marketing. "But there are just too many great opportunities out there right now - so we felt the time was right. It's business as usual for us, the team will remain in place - and we will be using these funds to continue to grow the business."

St Ives, which will have first refusal on the sale of any remaining equity in the business, says the investment is part of its strategy to create a 'complementary range of digital and marketing services' that will enable it to add value for existing and new clients. The company was advised on the investment by Ingenious Corporate Finance.