Yatter, the Edinburgh-based advertising agency, has been acquired by e-commerce specialist Velstar just three years after formation.

The company has enjoyed consistent growth since starting out in 2021, currently managing over £10 million in annual client ad spend.

The Scottish pay-per-click and paid social agency has a portfolio of 60-plus clients including Loch Lomond Group and Countrywide, employing 12 people in the capital. No jobs are under threat as a result of the agreement, which sees Yatter become the only Shopify Plus partner agency in Scotland.

Details of the deal remain undisclosed.

Yatter founder and CEO Gavin Bell, 30, said: “We have a very close alignment on values and culture and Velstarʼs impressive growth and shared vision to be the UKʼs No. 1 independent agency made them the perfect partner for Yatterʼs next chapter.

“It’s been a rewarding journey since setting up in 2021. We set out to be the best paid advertising agency in Scotland and believe that has been achieved.

“Velstar have emphasised they acquired us for a reason; that we have the skills and people they need in their business. It’s thrilling to see our teamʼs expertise join Velstarʼs growing capabilities across the likes of Shopify, while the team will also benefit from wider career progression opportunities.”

Velstarʼs purchase of Yatter sees the firm establish a presence in Scotland for the first time, the move following the acquisition of Leeds-based B2B agency 9XB in August 2024, Surrey agency WeTeachCRO in March 2024 and Chester-based marketing agency We Influence in October 2022.

London-based M&A consultancy Cactus supported Yatter throughout the acquisition.