Investec advises Newton on its acquisition of human-centred design and innovation consulting company Magnetic

Newton logo

How we helped

Newton, a UK-based specialist consultancy in strategic delivery, which received a minority investment from ICG in 2022, has acquired human-centred design and innovation company, Magnetic.

The deal marks Newton’s first acquisition since its inception in 2001 and demonstrates its plan to bolster impressive continued organic growth with M&A. The acquisition of Magnetic provides an exciting opportunity for Newton to add breadth and depth to their offerings to clients. Magnetic will continue to be run as a separate business beyond the transaction and for the foreseeable future, however, both companies will explore opportunities to boost the impact they deliver to clients through partnership.

Magnetic was formed through the merger of Fluxx and Magnetic North in 2022, and now boasts a team of over 70  designers and innovators. The business has thrived by applying a multidisciplinary and holistic approach to create innovative, commercially successful products and services for multinationals, government entities and fast-growing start-ups. The business has supported and partnered with an impressive list of clients including Google, HSBC, Mars, the BBC, Parliamentary Digital Service, adidas and The Economist.  

Leveraging Investec’s deep relationships and coverage of the consulting market we were able to initially connect Newton and Magnetic, with the businesses then working in partnership for several large clients and projects, before subsequently supporting Newton on the transaction.

Steven Phillips, Managing Partner Newton Europe, commented: “We’re very excited about the new capabilities and capacity for design and innovation that Magnetic brings to Newton. Since our first meeting, it was apparent that our respective leadership teams and cultures have much in common. The better we got to know each other, the more apparent it became that we are both motivated by similar things: curiosity and passion to unlock complexity, an optimism about the future and our ability to contribute towards it, and a determination to leave a meaningful impact with our clients, and within society.”

William Godfrey, Executive Director at Investec, commented: “We are delighted to have advised Newton on their acquisition of Magnetic. The deal marks Newton’s first acquisition and adds exciting new design and innovation capabilities to their client offering. The partnership will enable both companies to enhance the impact they deliver to clients, and we look forward to following the exciting growth journey ahead.”

 

About Newton

Newton partners with clients in strategic delivery across the public and private sectors, unlocking complexity to create meaningful and lasting impact.

Newton has throughout its 20+ year history shaped and delivered programmes across over 100 public sector organisations, multiple defence and infrastructure organisations, and leading retail and manufacturing supply chains. This work has delivered real and lasting impact, including better value offerings for consumers, over £1.5 billion savings on a national defence programme, and over £800m savings in the public sector while also improving outcomes for thousands of people.

Newton believes so strongly in what can be achieved together with clients that it stands by the founding idea of Newton – guaranteeing its fees against delivering real, measurable outcomes. This commercial approach is what sets it apart from many others in its field.