Q3-2017 MAP Quarterly-Final · WPP's Wunderman Founders Factory Startup Incubator Partnership You &...
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McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies [ Q3 2017 ] M&A in Advertising, Marketing Services & Marketing Technologies mccrackenap.com New York - Minneapolis - Sao Paulo
Transcript of Q3-2017 MAP Quarterly-Final · WPP's Wunderman Founders Factory Startup Incubator Partnership You &...
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
[Q3 2017]M&A in Advertising, Marketing Services & Marketing Technologies
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McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
Accenture continued to make its presence felt
in the marcom space by closing six deals in the
quarter: digital optimization company –
Clearhead; marketing consultancy – Brand
Learning; technology agency – Search
Technologies; creative agency - Wire Stone;
consultancy – IBB Consulting; and design firm
– MATTER.
Dentsu Aegis rounded out the top three
acquirers in Q3 by completing four
acquisitions: digital marketing shop – Sokrati;
data service firm – Rakuten; for Isobar, digital
agency – Little Giant Design; and for Merkle,
data analytics firm – Acquilla.
Agency group Havas made three acquisitions
in Q3 - health marketing communications
shop – SO What Global; social media shop –
Blink; and digital agency – The 88.
Agency group Next 15 continued acquiring:
content marketing shop – Velocity Partners;
research data firm Circle Research; and
integrated creative agency – Elvis
Communications.
[Q3 2017 overview]
Q3 2017
CompanyQ3 2017
Deals2017 YTD
2016 Deals
2015 Deals
10 27 29 40
4 18 34 26
6 14 4 7
2 7 1 -
2 6 4 19
3 6 4 9
0 3 - -
2 2 - -
1 2 3 4
0 1 3 2
0 1 2 7
0 0 5 -
0 0 2 -
0 0 6 3
0 2 - -
0 0 3 -
Q3 — Deal Count Forges Ahead We tracked 97 relevant M&A transactions in Q3, an increase of 9% when compared to the same period a year
ago and a 42% lift over Q2. The appetite for M&A in the verticals we follow remains intense—no doubt fueled by
a constantly expanding buyer group.
WPP regained the leaderboard spot with ten transactions closed this quarter, including digital agency – thjink;
virtual reality shop – Within; design agency – Design Bridge; podcasting company – Gimlet Media; digital
agency – Dis/play; marketing comms shop – Sensio; Digital advertising agency – hug; experiential marketing
shop – LOOM Media; start-up – Founders Factory; and marketing software integration firm – Pierry.
Maj
or D
eals
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing TechnologiesQ3 2017
[Q3 2017 overview]
Q3 — Much Ado About Consultancies & Consolidation
The consultancies are surging… Of the 97 deals tracked, predictably 23 came from global agency networks. Less expected, however, was the
surge of 12 acquisitions made by consultancies including the aforementioned Accenture completing 6, PwC
following with 2, and Boston Consulting, McKinsey, Providence, and Spectrum each completing 1 acquisition
this quarter. At 12 transactions, this is 3x the number of total deals closed in the first two quarters of this year
by consultancies.
Here are some stories on these topics you may have missed.
The consultants cometh: what it means for agencies
"The consultants are coming" – pub talk in Fitzrovia. The topic splits the pack. Some (holding companies) react
with fear; others (recent start-ups) with excitement about an M&A pay-day and some, like Adam & Eve DDB's
chief strategy officer Alex Hesz, argue it’s a wake-up call. More... Source: Campaign, October 3, 2017
Publicis and WPP are takeover targets and Accenture 'looks a credible buyer', bank says...
"Amid strong pressure on advertising agencies’ business models, a consolidation deal is a credible scenario,"
Jerome Bodin, an analyst at Natixis, wrote in a research report this week. He suggested the two most likely
scenarios are a consulting or IT services company buys an ad agency group or two ad groups merge as Publicis
Groupe and Omnicom tried to do in 2014. More... Source: Campaign, September 28, 2017
Bain aims to buy Japan advertising agency Asatsu-DK for $1.4 billion
TOKYO (Reuters) - U.S. private equity firm Bain Capital aims to buy Japan’s third-largest advertising agency,
Asatsu-DK Inc (9747.T), for 152 billion yen ($1.35 billion) in one of the largest buyouts in Japan this year, it
said on Monday. More... Source: Reuters October 2, 2017
And Consolidation continues at WPP...
In our Q2 Bulletin we covered WPP’s merger of Possible into Wunderman, in this edition we have links to
announcements involving another seven WPP shops.
WPP Consolidates 5 Shops into a Single Brand Agency
WPP is combining five of its brand consultancies and design agencies — Brand Union, The Partners, Lambie-
Nairn, Addison Group and VBAT — to form one large global brand agency More... Source. MediaPost, September 14, 2017
More WPP Consolidation as Rockfish Becomes Part of VML
Digital shop Rockfish moves inside VML, its larger digital sibling agency, growing the combined entity to
more than 3,000 employees in 33 locations worldwide. Rockfish retains its current brand but as a new division
within VML. More... Source: MediaPost, September 6, 2017
BUYER SELLER SECTOR (SELLER) VALUATION
Accenture Clearhead Digital Optimization Company
Acosta Actionlink Marketing Agency
Boston Consulting Group Maya Design Consultancy
Cello Health Advantage Healthcare Medical Advisory Services
Charter Communications 605 TV Measurement Partnership
Dentsu Aegis Sokrati Digital Marketing
Dentsu Aegis Rakuten Data Service Joint Venture
Dentsu's Merkel Acquilla Data Analytics
Discovery Communications Scripps Networks Interactive TV Network 11.9 Billion
Gatesman Noble Communications Advertising Agency
Grapevine SocMetrics Social Marketing
Havas Group SO What Global Health Communications
HuntsworthThe Creative Engagement Group (TCEG) Digital Agency £24.7m
Impact XM Atlantic Event Company
Internet Brands WebMD Online Publisher 2.8 Billion
Next15 Velocity Partners Content Marketing £5.9m
Next15 Circle Research Research Data £5.21m
Outbrain Zemanta Display Advertising Platform
Publicis Group The Herd Agency PR Agency
Rubicon Ntoggle Advertising Tech Firm $38.5 Million
Sizmek (Vector Capital Affiliate) Rocket Fuel Marketing Platform $147.3 Million
Spectrum Equity Bitly Platform Majority Stake
Stagwell Group Nielsen (TV Pilot Testing Assets) Television Pilot Testing Services
UDG Healthcare Cambridge BioMarketing Healthcare Communications $35 Million
WPP thjink Creative Agency
WPP Within Virtual Reality
WPP's Grey Sensio Marketing Communications
WPP's Wunderman Founders Factory Startup Incubator Partnership
You & Mr. Jones Tribe Dynamics Data Platform Investment
You & Mr. Jones Elsy AI Media Planning Investment
Zeta Global Boomtrain Marketing Platform $35-$40 Million
Q3 2017 deals
For more information about individual transactions, click on the buyer’s name.
JULY
Q3 2017
Continued »
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
https://www.rte.ie/news/business/2017/0717/890854-udg-acquires-cambridge-biomarketing-for-up-to-35m/
BUYER SELLER SECTOR (SELLER) VALUATION
Accenture Brand Learning Marketing Consultancy
Accenture Search Technologies Technology Agency
Accenture Wire Stone Creative Agency
Advantage Solutions The Data Council Data Platform
Blackhawk Network CashStar Gift Card Commerce Solutions $175 Million
CGI Summa IT Consulting Firm
CI&T Comrade Strategy & Design Firm
CloudCommerce Parscale Creative Digital Marketing Merger
Deloitte Acne Creative Agency
Dentsu Aegis' Isobar Little Giant Design Digital Agency
FCB (Interpublic) Chute Gerdeman Retail Design
Frontenac Industrial Color Brands Digital Production
Genesis Media Altitude Digital Video Ad Platform
Global Payments ACTIVE Network (Vista Equity) Enterprise Software 1.2 Billion
Great Hill Partners Zoominfo B2B Data Provider
Havas Group Blink Social Media Marketing
Impact Group Performance Sales and Marketing Marketing Agency
Infosys Ltd Brilliant Basics Product Design Firm
Leonard Green & Partners Advantage Solutions Marketing Services $4 Billion
MarketCast Fizziology Social Media Data Performance
Netsertive Mixpo Creative Management Platform
Providence Equity Partners DoubleVerify Ad Verification Majority Stake
Publicis Group Translate Plus Translation Company
PwC Optimisa Research Research Agency
PwC Thinkerbell Creative Agency Minority stake
RTL Group SpotX Video Platform $145 Million
SG360° Data Service Solutions (DSS) Fulfillment Provider
Taptica Tremor Video Platform 50 Million
Teneo Holdings Credo Management Consultancy
Valassis (Harland Clarke Holdings) Maxpoint Interactive Digital Marketing
WPP Design Bridge Design Agency
WPP's AKQA Dis/play Digital Agency
WPP's Grey hug Digital Advertising Majority Stake
WPP's Tenthavenue LOOM Media Experiential Marketing
Wpromote Demandwave Digital Agency
Q3 2017 deals
For more information about individual transactions, click on the buyer’s name.
AU
GU
ST
Q3 2017
Continued »
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
BUYER SELLER SECTOR (SELLER) VALUATION
Accenture IBB Consulting Consultancy
Accenture MATTER Design Firm
Ansira Partners, Inc. Local Biz Now Digital Marketing Platform
Bertrum Capital Spectrio LLC Customer Engagement Solutions
BlueFocus International Cogint Communications Agency Merger
Brandzooka Adjelly Platform
Citizen Relations (Blue Focus) The Narrative Group Influencer Marketing Specialist
Clearlink Portent Digital Agency
Finn Partners ABI Marketing Public Relations
Genpact TandemSeven Digital Customer Experience
Glispa JustAd Playable Ads Startup
GTCR Simplifi Holdings Digital Ad Platform
Havas Group The 88 Digital Agency
Hero Digital Delphic Digital Digital Agency
Hubspot Motion.ai Bot Creation Platform
Macromill Acturus Research Agency
McKinsey & Company VLT Labs Advertising Agency
Next15 Elvis Communications Communications Agency £5.5m
Open X Mezzobit Publisher tools
Open X Pubnation Publisher tools
Pitney Bowes Newgistics e-commerce agency $475 Million
Red Ventures Allconnect Comparison Marketing
RhythmOne PLC YuMe, Inc. Platform $185 Million
SAP Gigya Customer Identity Software
Spiria Iotopia Solutions ioT Solutions Provider
Stagwell Group CAA Marketing Entertainment Marketing
Thunder Adacus Creative AI & Analytics
UDG Healthcare MicroMass Communications Healthcare Communications $75.8 Million
Vision Critical Presly Software Company
WPP Gimlet Media Podcasting Company $5 Million minority stake
WPP's Wunderman Pierry marketing software integration
Q3 Total = 97 deals
Q3 2017 McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
SE
PT
EM
BE
R
Q3 2017 deals
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
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Regional Partner, Brazil
+55 11 984667000
Q3 2017 McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing TechnologiesQ3 2017
McCracken AP Transactions
McCracken Advisory Partners - M&A in Advertising, Marketing Services & Marketing Technologies
