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Q1-Q3 2019
TOP BUYERS
Overall, for the �rst nine monthsof 2019, the top buyer was Dentsuwith 10 acquisitions across bothmarketing services and technology,however the "big six" holdingcompanies are on course to acquirefewer than half the numberof agencies they bought last year.
Private Equity took three of the top�ve buyers positions, continuing tofocus on ‘buy and build’ strategies,adding new capabilities to existingportfolio companies.
Ranking third is Accenture who isleading the charge by some marginwhen it comes to managementconsultancies expanding theirfootprint in the marketing space.
254PE BACKED
MARKETING SECTOR M&A ACTIVITYQ1-Q3 2019
�ere were 1,057 global deals in totalfrom Q1 to Q3 – up 16% on the sameperiod in 2018.
With trade buyers continuing to seekto leverage data to know and engagewith their customers at a hyperpersonalised level, and a continued�ow of new entrants and new capitalinto the markets, there is likelyto be continued interest within themarketing services and technologyspace in the foreseeable future.
GEOGRAPHICAL SPLIT OF TARGETS
UNITED KINGDOM117
EASTERN EUROPE24
WESTERN EUROPE215
SOUTH AMERICA24
NORTH AMERICA506
MIDDLE EAST24
APAC140AFRICA07
316 CROSS BORDER
Q1-Q3 2019
North America has consistentlyremained the most active sectorwith 506 targets acquired in2019, followed by WesternEurope, which is continuallygaining momentum. France was the most active country inWestern Europe with 52 targetsacquired.
All 24 deals completed in theMiddle East were of targetsfrom Israel, 67% of whichwere within the marketing &eCommerce technology sector.
153
133
105
JANUARY FEBRUARY MARCH
391
Q1
00
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
117
133
104
APRIL MAY JUNE
354
Q2
111103
98
JULY AUGUST SEPTEMBER
312
Q3
DISCLOSED DEAL VALUE
Q1-Q3 2019
US $20.2 BILLION
06
08
1007
06
TOTAL DEAL VOLUME Q1-Q3 2019
1057
DEAL HIGHLIGHTSQ1-Q3 2019
�e third quarter of 2019 saw a slight drop in the number of private equity deals: 74 in Q3 compared to 91in Q2 and 89 in Q1. However, when looking at deal value, of the $8.8 billion disclosed deal value in Q3,private equity accounted for 75% (Bain, Vista, and Blackstone alone accounted for 65%). Meanwhile, tradebuyers have accelerated their external growth this quarter. Data-driven personalisation continues to attractmore buyers beyond advertising holding companies, from apparel, to restaurants, through life science: Nikeacquired AI-powered analytics company, Celect; McDonald’s acquired conversational AI, Apprente (secondacquisition in the space after Dynamic Yield in Q1), and Veeva Systems acquired healthcare marketing data& analytics �rm, Crossix Solutions, for $430 million.
TOP TWO SECTORS WITH SUBSECTOR BREAKDOWNQ1-Q3 2019
Within ‘Advertising & Creative Agencies’, more than half of the deals were in full service and integrated agencies. Within ‘Marketing and Sales Technology’, marketing automation, content production and syndication and data unification continue to be the most active subsectors. This highlights brands’ and marketers’ ongoing need for speed and highly personalised customer engagements.
Advertisng & Creative Marketing & Sales Technology
Marketing Automation
Content & Social
CDPs/CXPs
85
58
30
86
80
79
64
Advertising & Creative Agencies
Marketing & Sales Technology
326
Adtech
Events & PR
eCommerce Technology
Specialised Vertical Agencies
173
326 173
Full Service & integrated Agencies
186
Tech expert teams
35
Brand Marketing
19
Performance Marketing
30
Creative agencies
22
Social Media Marketing
Agencies
18
Direct Marketing
16
has acquired has acquired has acquiredhas acquired has acquired
TOP MARKETINGSECTORSQ1-Q3 2019
There were 1,057 global deals in total from Q1 to Q3 – up 16% on the same period in 2018.
This was mainly driven by 'Marketing & Sales Technology' and Adtech deals (up 52% in aggregate versus the same period last year), whereas the number of deals in marketing services including (‘Advertising and Creative Agencies’) was flat: 636 versus 634 in the first nine months of 2018.
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