Global Marketing Industry M&A Report 2020
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Global Marketing Industry M&A
Report 2020
55 things
THINGS YOU
you NEED
need TO KNOW
to know...
11 2
2
THE MARKETING SERVICES FINANCIAL SPONSORS REMAIN A KEY BUYER
M&A MARKET REMAINS CATEGORY, ACCOUNTING FOR 14% OF ALL
The Marketing
RESILIENT, UP Services
BY 2% IN Financial sponsors remain
TRANSACTIONS. a key Equity
Large Private buyer funds are
M&A
2019 market remains
vs. a decline of 7%* across category, accounting for 14% of all
building marketing agencies and platforms of scale through
transactions.
for Larger funds
Dept,are
Thebuilding
resilient, upGlobal
the broader by 2% inmarket
M&A acquisition,
marketing
example,
agencies andWpromote
North Alliance and PIA
platformsinof scale
in Europe and Tinuiti and North America
2019 vs a decline of through acquisition, for example, Dept, North
6.9% across the broader Alliance and PIA in Europe and Tinuiti and
Global M&A market. Wpromote in North America.
3 4
3 4 55
OVER 550 STRONG BUYER US MARKET
TRANSACTIONS AND INVESTOR REMAINS VERY
Over
WERE550 BY ”NON- Strong buyer and IN
INTEREST US market remains
ACTIVE, WITH
transactions
TRADITIONAL”were investor interest in
CONTINENTAL very active, with 459
459 COMPLETED
byMARKETING
”non-traditional” Continental
EUROPE, Europe,
IN completed in 2019.
IN 2019. Buyers
marketing
SERVICES services
BUYERS, in particular Germany,
PARTICULAR Buyersincreasingly
increasingly
buyers, representing
REPRESENTING Benelux and Nordics
GERMANY, BENELUX focusing on marketing
focusing on tech-
51%
51%of all
OFdeals.
ALL which saw over 100
AND NORDICS businesses
enabledwith
capabilities
Global networks
DEALS. Global transactions
which saw over 100 tech-enabled
and e-commerce
contributed a record
networks contributed completed acrosscompleted
transactions capabilities and
solutions
low of only 3%.
a record low of only 3% those geographies.
across those geographies agencies providing
e-commerce solutions.
Source: Capital IQ and JEGI | CLARITY research. Global transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Marketing Services space.
*Mergermarket 2019 Global M&A Report
We have analyzed OVER 1,100 MARKETING SERVICES TRANSACTIONS IN 2019
2019: A YEAR IN REVIEW
1,104
WHERE WERE THE TARGETS LOCATED? WHO WAS ACQUIRING?
51% of the acquirers have a heritage outside
459 of Marketing Services
vs. 455
2019
2018
Other
133 vs. 132 20%
vs. 1,084 in 2018 18%
63 vs. 69
Transactions announced
274 (25%) of the 47% Marketing
in 2019 in the Marketing 14%
14% 49% Services
45 vs. 31 transactions were Financial
Services space Buyer
cross-border vs.
22%
42 vs. 41
similar level in 2018
Software,
IT Services & 17%
888
Consultancies
The future of brand building is not just
73 31
about creating great ideas; it’s about creating
great experiences (…) We’re excited to work with
vs. 825 in 2018 David Droga and his team of brand strategists
Different acquirers Transactions vs. 59 in 2018 and creative minds to further our ambition to
announced by Transactions improve the full human experience with brands.
the Top 10 serial announced by the As we celebrate the 10-year anniversary of
acquirers in 2019 Global Networks, Accenture Interactive, joining forces with Droga5
representing a will be a game-changing milestone for us and
decline of 47% the industry as we continue to assemble the right
compared to 2018 mix of capabilities for the modern-day marketer.
Brian Whipple
Global CEO, Accenture Interactive
Source: Capital IQ and JEGI | CLARITY research. Global transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Marketing Services space
1,104 TRANSACTIONS ANNOUNCED IN 2019, REPRESENTING AN INCREASE OF 2% VS. 2018
2016 Deal activity in the Marketing Services sector recorded
2017 a strong start in 2019 with total deals in the first quarter
2018 being up 40% from Q1 2018
2019
January was a record month in terms of number of deals
announced in any given month over the last 4 years
107 86 110 92 67 96 85 77 104 83 97 73 86 69 86 71 95 81 93 95 98 78 83 66 94 89 75 86 76 85 99 70 120 127 91 72 147 117 97 90 96 80 96 81 69 83 69 79
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
303 255 266 253 241 247 286 227 258 247 289 290 361 266 246 231
1,077 transactions in 2016 1,001 transactions in 2017 1,084 transactions in 2018 1,104 transactions in 2019
Source: Capital IQ and JEGI | CLARITY research. Global transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Marketing Services space
NORTH AMERICAN AND EUROPEAN MARKETS REMAIN VERY ACTIVE
Transactions by target location
North America Europe Asia Top target locations:
459
vs. 455
in 2018
133
vs. 132 in 2018
63
vs. 69 in 2018
North America continued
501 379 138
to be the largest region
45 by deal volume in 2019
vs. 31 in 2018
45% 34% 13% The total number of deals
vs. 496 in 2018 vs. 46% vs. 408 in 2018 vs. 38% vs. 112 in 2018 vs. 10% 42 within Continental Europe and
vs. 41 in 2018
North America stayed relatively
flat in 2019 with a moderate
Australasia Latin America Africa and Middle East decline in France and Germany,
38
vs. 47 in 2018 of 6 and 9 deals respectively
32
The Netherlands, Italy and
vs. 33 in 2018 Finland, on the other side,
recorded sharp increases,
including the Carlyle acquisition
27
vs. 19 in 2018 of the leading Dutch agency
Dept, on which JEGI | CLARITY
advised
23
40 19 27
vs. 11 in 2018
Asia recorded a strong increase
4% 2% 2% 22
of 23% in 2019 driven by Japan
and India
vs. 3% vs. 2% vs. 1%
vs. 22 in 2018
vs. 38 in 2018 vs. 17 in 2018 vs. 13 in 2018
Source: Capital IQ and JEGI | CLARITY research. Global transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Marketing Services space
HALF OF THE ACQUIRERS WERE FROM A NON-TRADITIONAL MARKETING SERVICES BACKGROUND
Transactions by acquirer type
1,077 1,001 1,084 1,104
Includes Media, Publishing, Telecoms,
amongst others buyer types. Very
18% 21% 18% 20% Other strategic acquisitions that improve
acquirer’s overall marketing/sales
function
11% 14%
14% 14% Financial
Financial buyers maintained a similar
share of total acquisitions in 2019.
Buyers Alpine and LDC were amongst the
most acquisitive financial buyers
12%
13% 22% 17%
9% IT Services, Accenture continued its strong activity in
Software the space with the acquisition of creative
7% 3% and agency Droga5 – understood to be AI’s
Consultancies biggest transaction since its founding
5%
The Global Networks continued to
Global
represent a smaller proportion of total
Networks
deals in 2019 (3% compared to 5% in 2018)
50%
45% 46%
41%
Increase in proportion of deals by
Marketing Services buyers driven by
Marketing
both established groups (Next15, Finn
Services
Partners and Altavia) and more recently
formed ones (S4, DEPT and Heroiks)
2016 2017 2018 2019
Source: Capital IQ and JEGI | CLARITY research. Global transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Marketing Services space
25% OF ALL TRANSACTIONS WERE CROSS-BORDER
Split of cross-border transactions
TARGET LOCATION
Europe
Europe UK (excl. US RoW
In: 59 UK)
North Out: 65
America UK 86 12 18 13
In: 49 246
BUYER LOCATION
Out: 79 Europe
36 54 74 (excl. 24 198 18 16
430 UK)
2 Asia
22 5 In: 23
10 Out: 9
US 18 32 401 36
1
2
1
4 11 103 RoW 5 4 22 201
1
12
2
7
Total 133 246 459 266
1
7 North American companies
1 9 acquiring in Europe represented the
1
3
2
largest proportion of cross-border
12
transactions, 54, followed by
1
5
0 European companies acquiring into
14 North America, 36 (of which 18 had
0 Africa UK-based acquirers)
and ME 25
Latin In: 15 0
America Out: 4
In: 5 Australasia
Out: 3 In: 15
Out: 6
X X
X Transactions with target and acquirer Transactions with target and acquirer
In/Out deals from region in the same country within region X from different countries within region
Source: Capital IQ and JEGI | CLARITY research. Global transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Marketing Services space
WE HAVE LOOKED AT WHERE THE TOP 10 SERIAL ACQUIRERS IN 2019 HAVE BEEN INVESTING
2016 The Top 10 serial
37
2017 A total of A total of acquirers in 2019 was
85 73
2018 no longer dominated
2019 vs. by the Global Networks,
with their share within
transactions transactions
in 2018 in 2019 the top 10 now less than
50%. This is consistent
with the overall trend
of their deal activity,
22 22
which has been falling
significantly since 2016
Next15, S4, Finn
Partners, Alpine,
12 12 12 Altavia, and Lieberman
11
Research were new
9 9 entrants to the top 10
8 8
7 7 7 serial acquirers in 2019
6 6 6
5 5 5 5 5
4 4 4
3 1
– – 2 2 2 2 – – – 2 2 – 2
Asia (5) Europe (4)
Europe (6) Europe (2)
Europe (3) N. America (1) N. America (3) Europe (3) Asia (3)
N. America (3) N. America (4) Africa and
Key Target N. America (2) Asia (1) Europe (2) N. America (2) Europe (2) N. America (5) N. America (5)
◦Australasia (1) Europe (4) Middle East (2)
Geographies Australasia (1) Australasia (1) Australaisa (2) Asia (1) N. America (1)
◦C. America (1) Asia (1)
Latin America (1) Latin America (1)
Top 10 acquirers were responsible for 7% of total transactions in 2019 vs. 8% in 2018
Source: Capital IQ and JEGI | CLARITY research. Global transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Marketing Services space
NOTABLE TRANSACTIONS ANNOUNCED IN 2019
Some of the largest transactions in 2019 were… 51% of deals involved non-traditional Marketing Services acquirers
ANN. VALUE1 ANN. VALUE1
TARGET TARGET DESCRIPTION ACQUIRER TARGET TARGET DESCRIPTION ACQUIRER
DATE ($M) DATE ($M)
US-based end-to-end customer Willis Towers
Mar-19 Tranzact 1,335 Mar-19 Dynamic Yield US-based UX personalization platform McDonald’s 300
acquisition solutions provider Watson
US-based creative and
Apr-19 Droga5 Accenture n.a. May-19 Pervorm NL-based digital marketing agency Deloitte n.a.
strategic agency
US-based ad server and dynamic
US-based data driven Sizmek
Apr-19 Epsilon Publicis 4,400 May-19 creative optimization technologies Amazon n.a.
marketing company (Ad server & DCO)
of Sizmek
US-based business analytics
Jun-19 Tableau Salesforce 16,322 Oct-19 DataXu US-based demand-side-platform Roku 149
software provider
US-based data, insights and
Jul-19 Kantar Bain Capital 4,000 Dec-19 Exozet DE-based digital agency Endava n.a.
consulting company
14% of the deals were led by financial investors Other notable transactions
ANN. VALUE 1
ANN. VALUE1
TARGET TARGET DESCRIPTION ACQUIRER TARGET TARGET DESCRIPTION ACQUIRER
DATE ($M) DATE ($M)
US-based communication CVC Capital
Jun-19 Teneo n.a. Jan-19 Trendkite US-based PR software Cision 224
advisory firm Partners
US-based performance DK-based multi-channel
Jul-19 Vungle Blackstone n.a. Mar-19 Hjaltelin Stahl Accenture n.a.
marketing platform marketing agency
US-based digital experience Vista UK-based technology-led
Sep-19 Acquia 1,000 Mar-19 Brainlabs Livingbridge n.a.
cloud-based platform EquityPartners digital marketing agency
US-based PR and Marketing Platinum
Oct-19 Cision 2,783 Sep-19 Crossix US-based data analytics platform Veeva 432
communications software Equity
Dec-19 Dept NL-based digital agency Carlyle n.a. Nov-19 Jellyfish UK-based digital agency Fimalac n.a.
JEGI | CLARITY transactions in 2019
Source: Capital IQ and JEGI | CLARITY research. Global transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Marketing Services space
Notes: 1 Value denotes the Implied Enterprise Value of the target; Converted into USD at announced dateA seamless combination of KNOWLEDGE, INSIGHT AND EXPERTISE
JEGI | CLARITY – THE LEADING M&A ADVISORY FIRM FOR THE GLOBAL MEDIA,
INFORMATION AND MARKETING, SOFTWARE AND TECH-ENABLED SERVICES SECTORS
Mobile & Internet
CES IN BUS
Working with entrepreneurs, founders, private equity firms,
RVI & IN FOR INE
SE OGY
G
IN NO
L TE MA
LL T and global corporations
IG
SS IONCE
H E
& T KET
EC
R
N
MA
Over 60 people across London, New York, Boston and Sydney
Information
Data & Analytics
HUM
MANAG APIT
EDIA
& B VENTS
AN C
tent &
2C M
EM A Deep sector knowledge, providing out-of-market opportunities
Con
B2 & E
and outcomes
EN L
T
B
S
& T O F T WA RE ED
EC H - E N A B L
SERVICES Track record of surpassing client expectations
Clo u d & S aa S
This is the second time we have worked with the team I am super happy we chose JEGI | CLARITY to advise. Going into a process I wasn’t sure what
and put simply we would never do another deal without the difference or value add would be; on the other side I can confidently say that they were
them by our side. the difference between a good and an exceptional outcome. At the same time as driving
a fantastic process, they also represented us in a way that reflected our business culture.
Wesley ter Haar and Victor Knaap I would recommend them in a heartbeat!
Co-Founders, MediaMonks Daniel Gilbert
Chief Executive Officer, BrainlabsWE REMAIN INCREDIBLY ACTIVE ADVISING RIGHT ACROSS THE MARKETING LANDSCAPE
DEPT is a leading T3 is a leading CRM ProSites is a leading TOPO is a leading research SmartBrief is a leading MeritDirect is a leading Brainlabs is a leading Blue 449 is a leading
independent digital agency. and digital design/ provider of subscription- and advisory firm. digital media publisher of provider of multi-channel technology-led digital UK media agency.
innovation agency. based digital marketing targeted business news and B2B database products marketing agency.
solutions for local information by industry. and services solutions.
community professionals.
A PORTFOLIO COMPANY OF A SUBSIDIARY OF
A PORTFOLIO COMPANY OF
HAS SOLD
HAS MERGED HAS BEEN SOLD TO HAS BEEN
WITH SOLD TO
HAS BEEN SOLD TO
TO
A PORTFOLIO COMPANY OF
S4 CAPITAL
JKR is a leading design-led Hjaltelin Stahl is a leading MERGE is a leading OPEN Health is a leading MediaMonks is a Webcollage is a leading True Clarity is a leading Brand Learning is a leading
creative agency. Danish multi-channel integrated healthcare multi-disciplinary health leading global creative product content ecommerce and experience marketing and sales
experience agency. and technology communications and production platform. management SaaS platform services provider. capability consultancy.
deployment agency. market access group. platform for global
brands and retailers.
HAS SOLD HAS BEEN SOLD TO
A 75% STAKE TO
HAVE BEEN HAS BEEN HAS BEEN HAS BEEN
SOLD TO SOLD TO HAS BEEN SOLD TO SOLD TO
SOLD TO A CONSORTIUM
OF CHINESE INVESTORS
LED BY A SUBSIDIARY OF
The Monkeys and Maud Accordant is a leading FuseFX is a leading Framestore is a leading VFX Resource/Ammirati Selligent is an international RKG is a leading adam&eve is a leading
are leading Australian data-driven, full-service independent visual effects studio servicing the global is a leading, US-based SaaS platform delivering tech-enabled creative advertising agency.
agencies. programmatic advertising studio providing services featured film, advertising, digital marketing omnichannel audience search and digital
company and technology for episodic television, and content markets. and creative agency. engagement. marketing agency.
solution provider. feature films, commercials,
and VR productions.
Note: Selected JEGI | CLARITY transactionsLONDON SYDNEY NEW YORK BOSTON 90 Long Acre L35, Tower One International Towers 150 East 52nd Street One Liberty Square London 100 Barangaroo Avenue 18th Floor 11th Floor WC2E 9RA Sydney, NSW 2000 New York, NY 10022 Boston, MA 02109 +44 20 3402 4900 +61 2 8046 6840 +1 212 754 0710 +1 617 294 6555
You can also read
