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McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies M&A in Advertising, Marketing Services & Marketing Technologies [ Q1 2019 ] mccrackenap.com New York - Minneapolis - Sao Paulo
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McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
M&A in Advertising, Marketing Services & Marketing Technologies
[Q1 2019]
mccrackenap.com New York - Minneapolis - Sao Paulo
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
In a three-way tie for the top spot, Dentsu Aegis completed 4 acquisitions during the first
quarter of 2019. They led the pack in 2018 with the largest number of acquisitions each
quarter, totaling 18 last year. In Q1 2019, Dentsu Aegis acquired creative agency – BJL;
Singapore digital marketing agency – Happy Marketer; digital and creative agency – Redder
Advertising; and Merkle’s acquisition of user experience shop – Filter.
Q1 2019
[Q1 2019 overview]
CompanyQ1
2019 Deals
Second Half
2018
First Half 2018
2018 Deals
2017 Deals
2016 Deals
0 6 5 11 30 33
4 10 8 18 29 36
4 9 5 14 18 10
1 2 2 4 10 4
2 5 0 5 10 10
0 2 1 3 6 8
0 2 2 4 1 4
0 1 0 1 5 3
0 2 0 2 3 -
0 1 0 1 1 3
1 1 1 2 1 2
0 1 0 1 1 7
0 0 2 2 - -
1 3 1 4 9 1
4 3 1 4 2 2
0 2 1 3 - -
0 2 - 2 - -
�
A Slight Uptick in M&A Activity for Q1 2019
We tracked 107 relevant transactions in Q1 of 2019, that's a 13% increase over the same
period a year ago --
Accenture shared the #1 spot – also
with 4 deals closed during Q1,
including innovation strategy firm
– ?What if!; Danish creative agency
– Hjaltelin Stahl; data intelligence
agency – Knowledgent; and digital
marketing agency – Storm Digital.
Vista Equity Partners continued
their strong streak of acquisitions –
additionally with 4 Q1 deals closed.
Digital transformation software
company – Apptio; visual
communications software provider –
Four Winds Interactive; fitness
technology platform – MINDBODY;
and Cloud-based benefits
technology company – Plansource.
Major Buyers
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing TechnologiesQ1 2019
[Q1 2019 overview]Consolidation Continues
As we have been reporting since Q3 of 2018, consolidation continues and may be accelerating as one of the
most prevalent trends among the large agency networks.
Here are a few of the stories on this topic that we curated in Q1:
More Agency Consolidation May be Coming as Creative and Media Converge Again
Holding companies including Publicis and WPP restructure as clients increasingly seek integrated solutions.
More: Source: Adweek, Feb. 4, 2019
Publicis to Merge Global Media Networks Spark Foundry and Blue 449
Publicis Groupe’s Media division announced the union of two agency networks, Blue 449 and Spark Foundry,
to create a single entity serving clients around the world. More: Source: Adweek, Mar. 9, 2019
Kantar Merges all Brands Under Single Name as WPP’s Merger Plans Continue
Kantar has announced it will retire the names of its brands and consolidate all ervices and offerings under
the Kantar brand name. More: Source: The Drum, Mar. 18, 2019
Stagwell Group Merges Forward3D, PMX
Mark Penn's The Stagwell Group is combining two of its shops, PMX Agency and Forward3D, to form a global
brand performance marketing agency called ForwardPMX. More: Source: MediaPost, Jan. 15, 2019
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing TechnologiesQ1 2019
[Q1 2019 overview]
Some Other Stories of Interest You May Have Missed…
Is 73-Year Old Martin Sorrell’s New Agency the Future of Advertising
Sir Martin Sorrell’s prominent career on Madison Avenue started with buying a controlling stake in 1985 for
$675,000 in a company that manufactured wire and plastic products WPP, plc. He eventually built it into a
colossal marketing services firm with market value of $20 billion, 170,000 employees, and 3,000 offices in
112 countries by the time Sir Martin resigned his post as CEO last April.
More: Source: Forbes, Jan. 28, 2019
2019 Trends: Mergers, Acquisitions and the Melding of Traditional and Nontraditional Marketing
Over the last few years, companies and agencies that define the digital marketing space have experienced
significant growth via mergers and acquisitions. More: Source: Forbes Feb. 5, 2019
Publicis Groupe Stock Takes Another Tumble in the Wake of Weak Results
The day after Publicis Groupe released its 2018 financial results, Groupe leaders held an earnings call with
investors to address its disappointing organic growth and "higher than expected" client attrition.
But investors weren’t assuaged and sent the company’s stock tumbling for a second straight day. In mid-
afternoon trading on the Paris exchange it was down 14%.
More: Source: Media Post, Feb. 7, 2019
IPG Continues Impressive Growth Streak in Q4, Signals Strength in Axiom Deal
Interpublic Group of Companies (IPG) reported $2.41 billion in net revenue for Q4 2018, a year-over-year
organic net revenue increase of 7.1%, according to a company press statement. Organic net revenue
increased 6.3% in the U.S. and 8% internationally. IPG is targeting organic growth of 2% to 3% for 2019.
More: Source: Marketing Dive, Feb. 14, 2019
MDC Partners Begins The Mark Penn Era
It's official: Mark Penn is MDC Partners new CEO, a role Penn agreed to take on as his own burgeoning
holding company Stagwell Group struck a deal to invest $100 million in the MDC network.
More: Source: MediaPost Agency Daily March 15, 2019
See Below for the Full List of Q1 2019 Deals.
BUYER TARGET SECTOR (TARGET) VALUATION
A.T. Kearney Cervello Business Analytics Consultancy
Accenture Knowledgent Data Intelligence
Adweek CMO Moves LLC (Marketer Moves)
Industry Insights
Alamont Capital Publicis Healthcare Solutions Pharmaceutical Contract Commercial Services
Bain Capital Brillio IT Consulting Majority Stake
BV Investment Partners RKD Group Omnichannel Fundraising Majority Stake
Chime Communications Method Communications Technology Agency
Cision Falcon io Social Media Agency
Cision Trendkite Analytics Firm $225.0 Million
Claritas AcquireWeb CRM Company
Dalton Agency Anode Interactive Marketing & Corporate Events
Dentsu Aegis' Merkle Filter User Experience
Dept e3creative Digital Agency
Didit Print Digital Plus Marketing Agency
Discovery Play Sports Group Digital Sports Channels Majority Stake
Dotdash Byrdie Beauty Site
Dotdash MyDomaine Women's Lifestyle Site
DXC Technology Luxoft Software Development Company
$2.0 Billion
FanAI Waypoint Media eSports Data Start-up
Finn Partners CatchOn Travel Firm
Force24 SoAmpli Social Media Innovation
Forward 3D PMX Agency Brand Performance Agency
Merger
Globant Avanxo Cloud Computing
Havas Group Baltic-based Communications Group
Full Service Agency 51% Stake
ICR Westwicke Partners Healthcare IPO Advisor
Q1 2019 deals
For more information about individual transactions, click on the buyer’s name.
JAN
UA
RY
Q1 2019Continued »
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
BUYER TARGET SECTOR (TARGET) VALUATION
Integrate ListenLoop Marketing Technology Platform
LRW Killer Infographics Visual Communication Agency
Next 15 Planning-inc. Predictive Analytics £6.3 Million
NPD Group SportsOneSource (SOS) Sports & Outdoor Tracking Acquired Assets
ODK Marketing MJM Media Audio and Production Services
Periscope Equity LLC Power Digital Marketing Inc. Digital Marketing Agency Investment
PSAV and The Freeman Companies
Encore Event Technologies Event Technology Joint Venture
Publicis Soft Computing French Data Marketing Group
RTL Group Hospice Video Distribution Company
Sourcelink Path Interactive Digital Agency
Valassis GET1FREE, Inc. Direct Mail Company
Viacom Pluto TV Television Streaming Service
$340.0 Million
Vista Equity Partners Appt. Digital Transformation Software
Vora Ventures Hinge Digital Commerce Accelerator
We Communications (We) Codeword Content Marketing Agency
Williams Lea Tag Popcorn Global Shopper Marketing Activation
You and Mr. Jones Inside Ideas Group Internal Marketing Majority Stake
Accenture ?What If! Innovation Strategy Firm
Alpine SG (ASG) Authority Labs Software Platform
Alpine SG (ASG) Cyfe Online Performance Dashboard
Alpine SG (ASG) Reputation Loop Marketing Platform
Alpine SG (ASG) Reputology Monitoring & Management Platform
Alpine SG (ASG) SERPS Software Platform
Alpine SG (ASG) Social Report Social Media Marketing Platform
Q1 2019 deals
For more information about individual transactions, click on the buyer’s name.
FE
BR
UA
RY
Q1 2019Continued »
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
JAN
UA
RY
BUYER TARGET SECTOR (TARGET) VALUATION
Apple DataTiger Digital Marketing Startup
Apple Oullstring Voice App Startup
Brightcove Ooyala Online Video Platform
Dentsu Aegis BJL Creative Agency
Dentsu Aegis Happy Marketer Digital Marketing Agency 100% Stake
Dentsu Aegis Redder Advertising Digital & Creative Agency
DoubleVerify Zentrick Digital Video Technology
Finn Partners Moorgate Communications Communications Firm
Finn Partners Small Army Marketing and Creative Services
Google Alum Cloud Migration Platform
Gradient Little Arrows Social and Digital Agency Merger
Hearst Mangazines Clevver You Tube Pop Culture News Brand
Insignia Capital Group MediaAlpha Programmatic Advertising Platform
Investment
Kibo Certona Omnichannel Personalization Solutions
Lansons Intermarket Financial Service Communications Firm
Lucid Group Bluedog Digital & Creative Agency
Mailchimp LemonStand Ecommerce
Millpond Equity Partners Futuri Media Audience Engagement for Broadcasters
Investment
Nielsen Sorenson Addressable Advertising Company
Outbrain Ligatus Native Ad Provider
PRA Business Events Koncept Events Business Events
Publicis M&C Saatchi's Blue 449 Media Brand £25.0 Million
Spotify Anchor Podcasting Startup
Spotify Gimlet Media Podcasting Startup
Taptica RhythmOne Mobile Ad Tech Firm $176.0 Million
The We Company's WeWork Euclid Software Company
Q1 2019 McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
FE
BR
UA
RY
Q1 2019 deals
For more information about individual transactions, click on the buyer’s name.
BUYER TARGET SECTOR (TARGET) VALUATION
TMP Worldwide CKR Interactive Recruitment Marketing Firm
UTA Digital Brand Architects Influencer Firm
Vista Equity Partners Four Winds Interactive Visual Communication Software Provider
Vista Equity Partners MINDBODY, Inc. Fitness Technology Platform
Accenture Hjaltelin Stahl Creative Agency
Accenture Storm Digital Digital Marketing Agency
Bridgeline Digital Stative Tech Group's OrchestraCMS (Assets)
Digital Experience Platform
Bustle Digital Group The Outline Digital Media
Cinedigm Future Today Streaming Platform $60.0 Million
Dennis Publishing Kiplinger Financial Publication
Dentsu Aegis BJL Creative Agency
Dept Rocket Insights Product Agency
Disney 21st Century Fox Production Companies, networks and franchises
$71.0 Billion
Duncan Channon A2G Social Experiential Agency
Financial Times The Next Web (TNW) Events and Media Company Majority Stake
Fishawack Group Dundee Healthcare Communications Agency
Future plc Mobile Nations Digital Consumer Electronics Publisher
HCL Tech Strong-Bridge Envision Digital Transformation Consulting
$45.0 Million
Informatica Allsight Customer Insights Start-up
Investis Digital Vertical Measures Digital Marketing Agency
Kayne Partners Ideas United Creative Agency $15.0 Million Equity Funding
Living Bridge Brainlabs Marketing Agency Investment
McDonald's Dynamic Yield Personalization Software
MDC Partner's Instrument This Also Digital Brand and Product Innovation
Minute Media Gannett's The Big Lead Lifestyle Brand
Prophet Springbox Digital Agency
Q1 2019 McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
FE
BR
UA
RY
Q1 2019 deals
For more information about individual transactions, click on the buyer’s name.
MA
RC
H
BUYER TARGET SECTOR (TARGET) VALUATION
Sia Partners Loft9 Management Consulting Firm
Stagwell MDC Partners Ad & PR Agency Holding Company
$100.0 Million stake
SugarCRM Collabspot Email Integration Tools
Survey Monkey Usable Web Survey Company $80.0 Million
Talon Granddesign Out of Home Media Agency
Vista Equity Partners Plansource Cloud-Based Benefits Technology
Wasatch Group Omnicom's MarketStar Sales Outsourcing
Q1 Total = 107 deals
Q1 2019 McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
MA
RC
H
For more information about individual transactions, click on the buyer’s name.
[Contact]
McCracken Advisory Partners
mccrackenap.com
Keith McCracken
Minneapolis
CEO & Co-Founder
+1 952 922 8140
Ronnie Cohen
New York
Co-Founder
+1 212 941 6498
Brian Harris
New York
Senior Advisor
+1 917 968 0765
Rogerio Campos
Sao Paulo
Regional Partner, Brazil
+55 11 984667000
Q1 2019 McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing TechnologiesQ1 2019
McCracken AP Transactions
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
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