Innovation and design consultancy Magnetic has completed a management buy-out, returning the business to independent ownership. The firm spent the last two years as part of Newton.
Founded in 2021 via the merger of independent consultancies Fluxx and magneticNorth, Magnetic rose to prominence 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 combined entity grew to 70 staff, buoyed by an early spike in demand for its services – with clients including Abellio, John Lewis, KPMG, Parliamentary Digital Service, adidas, Google and The Economist, among others.
This momentum attracted the attention of a number of prospective buyers. In 2024, this saw Magnetic agree to become part of Newton – joining more than 450 consultants across the UK. According to a release at the time, Newton and Magnetic had previously worked in partnership for several large clients, and were aware of their similarities in working style and shared beliefs, with the acquisition billed as a natural next step that builds on common aspirations and a shared experience of delivering exceptional client value.
Just two years later, however, Magnetic has exited Newton’s ownership, following a management buy-out. According to a statement from the newly independent firm, the move “reflects the belief that Magnetic is best placed to thrive independently, giving the business the freedom to stay distinctive and keep doing what it does best: move at pace and use design to solve complex problems for clients.”
The move comes at a time in which much of the consulting industry is undergoing a period of consolidation – as companies look to solidify their bottom-line performances, amid a lengthy period of slim growth. Bucking this trend, however, Magnetic is hoping to signal “a strong commitment to a different path for growth.”
New leadership
As part of the deal, CEO Jenny Burns will be joined in leading the business by Managing Director Jason DaPonte, Impact Director Conor McNicholas and Marketing Director Amelia Shepherd. The leadership team combines long-standing experience within Magnetic with broader expertise across innovation, culture, brand and commercial growth.
Burns commented, “Magnetic has never tried to be a traditional consultancy. We’ve always believed the best work happens close to the problem. Independence gives us the clarity and pace to operate that way – experienced people bringing energy to complex challenges, helping organisations get unstuck and building a consultancy that’s human, collaborative and focused on positive impact.”
Magnetic retains its B Corp status – first obtained under its previous lease of independent life – while continuing relations with clients including Mars Wrigley, PepsiCo, Bupa, HSBC, Legal & General, Kingfisher Group, and Innovate UK. The firm also confirmed that it will maintain a positive relationship with Newton, and will “continue to collaborate on client work where it is right to do so.”
When asked how many staff are still with the firm as it embarks on its latest chapter, Magnetic declined to detail a specific number. However, the firm did stat that, “as a part of reviewing the future structure of the business, some changes are taking place within the team.”
“Our team remains well placed to best serve our array of clients and deliver exceptional work as usual”, a statement added.
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