Private Equity Driving Marketing M&A

M&A activity in the marketing sector in the first half of 2019 was largely driven by private equity (PE) investment, with most of the major marcoms networks absent from the list of the most active buyers, according to a report.

The analysis was made by Results International, who are M&A and funding advisors to the marketing, technology and healthcare sectors and whose clients include Microsoft, News Corp and WPP, as well as Merkle and St Ives Group (now Kin + Carta).

PE investments amounted to 180 deals in 6 months. These include some who see a major opportunity in insights and analytics, such as Horizon Capital which made three acquisitions in the Spring - LiFE, ResearchBods and Bonamy Finch - and combined them into a new agency, STRAT7; and also backed an MBO at sector specialist AgriBriefing last month.

Of the seven most active buyers in 2019 so far, as identified by Results International, five were private equity firms, with Insight Venture Partners the most acquisitive in completing eight deals. Dentsu made six acquisitions in H1, well down on last year's first half count of 17, but still more than any other holding company (unsurprisingly, WPP activity is well done on its past level). Last week, Dentsu Aegis Network announced it had acquired a majority stake in India-based data and analytics company Ugam, which will be added to its performance marketing division Merkle.

Accenture was also among the most active buyers, with half a dozen deals.

M&A activity in North America topped that in other regions (344 deals in the six months, or 46% of the total); while the UK saw 12% of deals and the rest of Western Europe combined some 21%.

Web site: www.resultsig.com/insight/marketing-sector-ma-activity-h1-2019 .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.