Costa Mesa-based SCS advertising agency has been purchased by Toronto-based PopReach Corp. for approximately $14.9 million this month.

PopReach is a digital media and technology firm that works to manage and grow service providers. It reported revenue of $25.5 million for the three months ended September 2022, which is over double year-over-year.

SCS is currently run by Chief Executive James Schiefer and provides advertising services to automotive, consumer goods, entertainment and technology markets. The agency emerged from the combination of Schiefer Media and ChopShop Entertainment in 2016, overseen by Schiefer years after he had acquired the company from his father Carl in 2005.

The media firm ranked as Orange County’s third-largest ad agency by revenue. SCS reported $80.7 million in sales for 2022 sporting an 18% jump from the year prior, according to Business Journal data.

“The strength of their financial profile, blue chip customer base, and potential cross-sell opportunities within our brand solutions offerings provides many levers for us to drive growth and returns for PopReach and its shareholders,” PopReach Chief Executive Jon Walsh said in statement.

The agency will continue operating as SCS under CEO Schiefer as it joins the umbrella of brands under PopReach. Other platforms within PopReach’s portfolio include PopReach Games, NotifyAI, Q1Media, Contobox and another recent acquisition Ubiquity.

The new parent also said it was drawn to the data-first and omnichannel business model of SCS. The agency aims to help drive its clients’ business by using analytics and digital content, according to Chief Strategy Officer Jeff Roach.

“It has been a dream of mine to find a partner who would allow SCS to expand our footprint to new technology capabilities and new markets around the world,” Schiefer said in a statement. He added that being aligned with PopReach’s portfolio of digital media companies will help the agency’s future work.

Clients include Vans, Warner Bros. Discovery, Mothers Polish, Baldwin locks and others.

Buyer, Then Seller

SCS has accomplished its own acquisitions to grow a larger footprint in the past.
The agency acquired Fuel Industries in 2018 and Swarm in 2021 adding two offices in Ottowa, Canada and Atlanta respectively.

Acquisition and mergers remain a major part of its expansion plans. Roach told the Business Journal of a possible major office expansion last March.

Its offices currently employ about 100 people.

“We are perfectly positioned to support the unique needs of marketers today,” Schiefer said.