The landscape of M&A continues to evolve, with a mix of significant events, industry consolidations, and notable partnerships?across various capability segments.
The filing for Chapter 11 bankruptcy protection by MediaMath, a programmatic demand-side platform, has sent ripples throughout the media-tech sector. Time will tell on the impact on sentiment and reality but the implications are significant. Companies closely associated with MediaMath will navigate through challenges and uncertainties.?A reminder of the importance of strong internal finance and accounts receivable functions, strategically watching for indications of stress in the ecosystem.
The marketing industry in Australia is witnessing a wave of agency mergers, particularly amongst niche independents.?For example, the merger between Bolster and Common State has led to the establishment of the Bolster Group, while commercial rights specialists Aeroplane Agency and indigenous-owned creative collective Going North have also joined the alliance. Operating independently under their respective brand names, these Australian agencies are coming together to offer a wide range of services to clients, leveraging their combined expertise and resources. We have also seen these collective-type structures pop up in the ASEAN region too.?Such arrangements can help propel consultancies and provide a more holistic service, tapping capability and talent flexibly. We are seeing new skill sets and jobs emerge driven by AI and other developments. Partnerships may prove invaluable in terms of efficient capital investment as we navigate into this era.
The trend of consolidation within the marketing industry continues. Of note are recent acquisitions made by Omnicom Media Group and Havas. Omnicom Media Group expanded its portfolio by acquiring creative agency Grabarz & Partner in Germany and specialist agency Ptarmigan Media in the UK. Similarly, Havas strengthened its creative offerings by acquiring a majority stake in Uncommon, a renowned creative agency based in the UK. These strategic acquisitions highlight the ongoing drive to enhance capabilities, broaden?market?presence, and deliver innovative solutions to clients.
USA:?MediaMath, a programmatic demand-side platform (DSP), has filed for?Chapter 11 bankruptcy protection?after failing to find a possible acquisitor
- MediaMath was one of the first programmatic DSPs and had reportedly raised more than $600 million since 2007.?
- Once valued at over $1 billion, the company had struggled recently as new executives were brought in to right the ship.
- Viant Technology and Verve Group were reportedly in talks to acquire MediaMath, but neither deal came to fruition, eventually leading to the bankruptcy filing
- MediaMath’s filing indicates that the company owes between $100 million and $500 million to more than 200 creditors. Among those creditors are Google, Magnite, OpenX, Pubmatic and Xandr. Magnite and PubMatic are each owed upward of $10 million.
USA:?IBM?Acquires Cloud Software Company?Apptio
- Apptio has 1,450 employees.
- Apptio is a provider of SaaS-based Technology Business Management (TBM) solutions for managing businesses in the IT field.
- The acquisition of Apptio will expedite the development of IBM’s IT automation abilities and is an extension of IBM’s concentrated focus on hybrid cloud and AI.
- IBM is set to acquire Apptio from?Vista Equity Partners?for US$4.6 billion.
- Grabarz & Partner has 260 employees.
- Grabarz & Partner is an award-winning creative agency that works with prominent global brands.
- The acquisition of Grabarz & Partner further cements Omnicom’s presence in Germany, the fourth-largest advertising?market?in the world.
- The agency retains its name and will operate independently within Omnicom’s Diversified Agency Services (DAS) division. The management team will likewise retain their existing roles going forward.
- Ptarmigan Media has 150 employees.
- Ptarmigan delivers a range of services, including fully integrated media planning and buying,?market?research, search and social, content and creative.
- The company specialises in serving financial services clients in the Asset Management, Life and Pensions, Banking, Trading and Platforms, Wealth Management, Fintech, and Insurance sectors across APAC, EMEA and North America.
- Ptarmigan Media has ￡125m in billings and Omnicon will expand its financial service expertise with the acquisition.
- Ptarmigan Media will continue to operate as an independent brand within OMG and will be led by its current management team.
UK:?Havas?Acquires Majority Stake in Creative Agency?Uncommon
- Uncommon has 160 employees.
- Uncommon is a creative studio spanning advertising strategy, customer experience and production.
- Havas acquired 51% of Uncommon in an all-cash deal that values the London-based company at more than 100 million British pounds, or around $129 million.
- Uncommon founders will retain ownership of the remaining 49% of the business and operate the company independently of Havas, which is owned by Paris-based holding company?Vivendi.
- Havas made the deal for Uncommon, partly as a counter to marketers’ growing interest in generative artificial intelligence. AI’s ability to develop new creative ideas has made it important for agencies to offer clients top-shelf creative talent that can outperform the machines, said Yannick Bolloré, chairman and chief executive of Havas.
- Havas’s last acquisition of a creative agency came in early 2021 when it bought a majority stake in the Singapore-based BLKJ. The company made nine acquisitions last year and three in 2023, including the Indian digital marketing agency PivotRoots and HRZN, a German agency specializing in social media and content creation.
Ireland:?GlobalLogic?Acquires Leading Software Engineering Firm?Sidero?
- Sidero has 240 employees.
- Sidero provides agile and cloud-native software innovation.
- This strategic acquisition aims to bolster GlobalLogic's capabilities in the communications technology sector and expands its European presence in Ireland.
- Sidero will continue to operate with its existing leadership and staff as a wholly-owned subsidiary of GlobalLogic
Australia:?Bolster?and?Common State?Merge to Form New Agency Group Bolster Group
- Bolster Group has 62 employees.
- Bolster Group will provide a full-service offer incorporating communications, creative, media, PR, talent and influencer management, events and digital and commercial rights services.
- The group will also welcome commercial rights, experiential and sponsorship specialists?Aeroplane Agency?and Indigenous-owned creative collective?Going North.
- While continuing to operate independently under their respective brand names, Bolster, Common State, Aeroplane and Going North will commence a combined service offering to clients.
USA:?DigitalOcean?Acquires Cloud Computing Company?Paperspace
- Paperspace has 48 employees.
- Paperspace is a cloud computing and ML development platform for building, training and deploying machine learning models.
- Paperspace’s infrastructure and tooling, once integrated with DigitalOcean’s products, will enable customers to more easily test, develop and deploy AI applications.
- Prior to the acquisition, Paperspace raised $35 million from investors including?Battery Ventures,?Intel Capital,?SineWave Ventures?and?Sorenson Capital.
- The Paperspace acquisition is DigitalOcean’s first since 2022, when it bought Pakistani cloud hosting service provider?Cloudways?for $350 million, and its fourth since its public stock listing in 2021.
- The deal values Paperspace at $111 million, paid in cash.
USA:?Tiny?Acquires Product Engineering Firm?HappyFunCorp
- HappyFunCorp has 70 employees.
- HappyFunCorp offers designing, engineering, product prototyping and technical project management and builds web applications, mobile applications and other internet-related products.
- HappyFunCorp is being acquired with a mix of shares and cash and will continue to operate independently.
- The deal values HappyFunCorp at $30 million.
Philippines:?DO. Agency?Acquires Digital Media & KOL Agency?Ambient Digital
- Ambient Digital has 60 employees.
- Ambient Digital provides online marketing services, including display and video on website, social media and video channels, influencer marketing, search engine optimisation and website design.
- The acquisition of Ambient Digital allows DO to expand into Southeast Asia.
- Following on from the micro-networks launch of DO Japan in 2022, DO now has operations across Australia, Japan, and three South-East Asian?markets, Singapore, Bangkok and Manila, with expansion plans for Europe, UK, MENA & North America.
France:?Cytel?Acquires Research and Consulting Company?stève consultants
- stève consultants has 25 employees.
- stève consultants specialises in?market?access, real-world, and health economics and outcomes research.
- The acquisition further expands Cytel’s real-world & advanced analytics capabilities, giving sponsors an expanded global offering, with access to additional specialists and localized expertise.?
- This acquisition continues the company’s growth in key European?markets.
USA:?The Vertex Companies?Acquires Business Consulting Firm?Breakwater Forensics
- Breakwater Forensics has 28 employees.
- Breakwater Forensics is a full-service expert witness and business consulting firm specializing in damages, scheduling and government contracts.
- The addition of Breakwater Forensics will augment and strengthen Vertex Companies’ forensic presence and expert bench.
- The Vertex Companies is backed by?Wind Point Partners. With $6 billion in assets under management, the American private equity firm will continue seeking acquisitions in the consumer products, industrial products and business services sectors.
Ireland:?DNV?Acquires Environmental Consultancy?Enviroguide Consulting
- Enviroguide Consulting has 40 employees.
- Enviroguide delivers environmental and sustainability consultancy services to support sustainable development for public and private sector customers.
- The acquisition strengthens DNV’s foothold in the region and expands DNV's portfolio of environmental solutions.
- Enviroguide has doubled in turnover over the last two years and DNV forecasts it will grow its environmental services further.
UK:?160over90?Acquires Creative Experience Agency?XYZ
- XYZ has 35 employees.
- XYZ produces brand experiences and live actions across Europe, the US and India.
- 160over90 was acquired by Endeavor in 2018 for $200 million and operates as a subsidiary of Endeavor.
- The acquisition expands 160over90’s capabilities and presence in Europe.
France:?The Independents?Acquires Innovative Social Media Marketing and Influence Agency?CTZAR
- CTZAR has 37 employees.
- CTZAR is an agency that specializes in advocacy marketing
- CTZAR has doubled its turnover between 2019 and 2023 and increased its profitability beyond 15%
- This acquisition provides CTZAR with a gateway to a global platform across ten countries, bolstering its international presence, particularly in key regions such as Asia, the USA, the Middle East, and Europe.
USA:?BlueAlly?Acquires Microsoft Cloud Partner?B2B Technology Solution
- B2B Technology Solution has 25 employees.
- B2B Technology Solution provides business productivity solutions using the Microsoft platform.
- The acquisition enhances BlueAlly’s client service experience and also strengthens existing cloud-based solutions.
- This acquisition marks BlueAllys’s fifth acquisition since 2021.
USA:?Avenue Z?Acquires PR Firm?Bevel
- Bevel has 13 employees.
- Bevel advises private and public companies on digital and traditional media relations, reputation management, crisis communications, content creation, events, media training, and design.
- Avenue Z says it is actively expanding and plans to acquire companies in digital marketing, branding, analytics, and technology.
- Avenue Z’s acquisition of Bevel is its second deal since its founding earlier this year.
UK:?Ryan?Acquires Leading Research and Development Tax Relief Consulting Firm?Indigo Consulting Group
- Indigo has 7 employees.
- Indigo helps clients in the construction industry secure tax credits, reduce their corporate tax bills, and obtain refunds related to innovative research and development projects.
- The acquisition enables Ryan to offer a full suite of tax services and software solutions.
- The acquisition is the latest in a string of recent strategic acquisitions made by Ryan in the UK.
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