14r31The Marketing Services MA market remains resilient up by in 2019

14r31The Marketing Services MA market remains resilient up by in 2019 - Description


31302928272625243023222130262020193029223018262217161616Source Capital IQ and JEGI CLARITY research Global transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Mark Download

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1 
 \rThe Marketing Services M&A market remains resilient, up by in 2019 vs a decline of 6.9% across the broader Global M&A market.Over transactions were by ”non-traditional”marketing services buyers, representing 51% of all deals. Global networks contributed a record low of only 3%Strong buyer and investor interest in Continental Europe, in particular Germany, Benelux and Nordics which saw over 100transactions completed across those geographies.US market remains very active, with 459completed in 2019. Buyers increasingly focusing on marketing businesses with tech-enabled capabilities and agencies providing e-commerce solutions.Financial sponsors remain a key buyercategory, accounting for 14% of all transactions. Larger funds are building marketing agencies and platforms of scale through acquisition, for example, Dept, North Alliance and PIA in Europe and Tinuiti and Wpromote in North America. 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 sp

2 ace. Mergermarket 2019 Global M&A Rep
ace. Mergermarket 2019 Global M&A Report 5 THINGS YOU NEED TO KNOWTHE MARKETING SERVICES M&A MARKET REMAINS RESILIENT, UP BY 2% IN 2019 vs. a decline of 7%* across the broader Global M&A marketOVER 550 TRANSACTIONS WERE BY ”NONTRADITIONAL” MARKETING SERVICES BUYERS, REPRESENTING 51% OF ALL DEALS. Global networks contributed a record low of only 3%STRONG BUYER AND INVESTOR INTEREST IN CONTINENTAL EUROPE, IN PARTICULAR GERMANY, BENELUX AND NORDICS which saw over 100 transactions completed across those geographies US MARKET REMAINS VERY ACTIVE, WITH 459 COMPLETED IN 2019. Buyers increasingly focusing on tech-enabled capabilities and e-commerce solutionsFINANCIAL SPONSORS REMAIN A KEY BUYER CATEGORY, ACCOUNTING FOR 14% OF ALLTRANSACTIONS. Large Private Equity funds arebuilding marketing agencies and platforms of scale through acquisition, for example, Dept, The North Alliance and PIA in Europe and Tinuiti and Wpromote in North America We have analyzedOVER 1,100 MARKETING SERVICES TRANSACTIONS IN 2019 2019: A YEAR IN REVIEW 1,104vs. 1,084 in 2018Transactions announced in 2019 in the Marketing Services spacevs. 825 in 2018Different acquirers Source: Capital IQ and JEGI | CLARITY research. Gl

3 obal transactions announced between 01/0
obal transactions announced between 01/01/2019 and 31/12/2019 where the target is within the Marketing Services space he future of brand building is not just about creating great ideas; it’s about creating great experiences (…) We’re excited to work with David Droga and his team of brand strategists and creative minds to further our ambition to improve the full human experience with brands. As we celebrate the 10-year anniversary of Accenture Interactive, joining forces with Droga5 will be a game-changing milestone for us and the industry as we continue to assemble the right mix of capabilities for the modern-day marketer. Brian Whipple Global CEO, Accenture Interactive WHERE WERE THE TARGETS LOCATED? 49% 2019 201847%22%14%18%14%17%20% Marketing Services Software, IT Services & Other Financial Buyer 51% of the acquirers have a heritage outside of Marketing ServicesWHO WAS ACQUIRING? Transactions announced by the Top 10 serial acquirers in 2019 vs. 59 in 2018Transactions announced by the Global Networks, representing a decline of 47% compared to 2018 459 vs. 455 133 vs. 13263 vs. 6945 vs. 3142 vs. 41 274 (25%) of the transactions were cross-border vs. similar level in 2018 1,104 TRANS

4 ACTIONS ANNOUNCED IN 2019, REPRESENTING
ACTIONS ANNOUNCED IN 2019, REPRESENTING AN INCREASE OF 2% VS. 2018 Deal activity in the Marketing Services sector recorded a strong start in 2019 with total deals in the first quarter being up 40% from Q1 2018 January was a record month in terms of number of deals announced in any given month over the last 4 years 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 1,001 transactions in 2017 241 247 286 227 1,084 transactions in 2018 258 247 289 290 1,104 transactions in 2019 361 266 246 231 Jan 107 9267968577104839773FebMarAprMayJunJulAugSepOctNovDecJan866986719581939598788366FebMarAprMayJunJulAugSepOctNovDecJan94897586768599709172FebMarAprMayJunJulAugSepOctNovDecJan909680968169836979FebMarAprMayJunJulAugSepOctNovDec 2016201720182019 1,077 transactions in 2016 303 255 266 253 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 spaceNORTH AMERICAN AND EUROPEAN MARKETS REMAIN VERY ACTIVE Top target locations: Transactions by target location45%vs. 46%vs. 3%34%vs. 38%vs. 2

5 %13%vs. 10%vs. 1%EuropeLatin AmericaAsia
%13%vs. 10%vs. 1%EuropeLatin AmericaAsiaAfrica and Middle East501vs. 496 in 2018vs. 38 in 2018379vs. 408 in 2018vs. 17 in 2018138vs. 112 in 2018vs. 13 in 2018North AmericaAustralasia 459vs. 455in 2018133vs. 132 in 201863vs. 69 in 201845vs. 31 in 201842vs. 41 in 201838vs. 47 in 201832vs. 33 in 201827vs. 19 in 201823vs. 11 in 201822vs. 22 in 2018 North America continued to be the largest region by deal volume in 2019 The total number of deals within Continental Europe and North America stayed relatively flat in 2019 with a moderate decline in France and Germany, of 6 and 9 deals respectively The Netherlands, Italy and Finland, on the other side, recorded sharp increases, including the Carlyle acquisition of the leading Dutch agency Dept, on which JEGI | CLARITY advised Asia recorded a strong increase of 23% in 2019 driven by Japan and India Includes Media, Publishing, Telecoms, amongst others buyer types. Very strategic acquisitions that improve acquirer’s overall marketing/sales function Financial buyers maintained a similar share of total acquisitions in 2019. Alpine and LDC were amongst the most acquisitive financial buyers Accenture continued its strong activity in the space with the acquisition of

6 creative agency Droga5 – understood
creative agency Droga5 – understood to be AI’s biggest transaction since its founding The Global Networks continued to represent a smaller proportion of total deals in 2019 (3% compared to 5% in 2018) Increase in proportion of deals by Marketing Services buyers driven by both established groups (Next15, Finn Partners and Altavia) and more recently formed ones (S4, DEPT and Heroiks) 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 spaceHALF OF THE ACQUIRERS WERE FROM A NONTRADITIONAL MARKETING SERVICES BACKGROUNDTransactions by acquirer type 45%7%13%14%21% 201620171,0771,001 41%5%22%18% 20181,084 46%3%17%20% 20191,104 50%9%12%11%18% Other Financial Buyers IT Services, Softwareand Consultancies Global Networks Marketing Services 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 space25% OF ALL TRANSACTIONS WERE CROSSBORDEREuropeIn: 59Out: 65Africa and MEIn: 15Out: 4AsiaIn: 23Out: 9AustralasiaIn: 15Out: 6Latin AmericaIn: 5Out: 3 Split of cross-border transactions TARGET

7 LOCATIONEurope (excl. UK)RoWBUYER LOCATI
LOCATIONEurope (excl. UK)RoWBUYER LOCATIONEurope (excl. UK)19832401RoW201Total133246459266North American companies acquiring in Europe represented the largest proportion of cross-border transactions, 54, followed by European companies acquiring into North America, 36 (of which 18 had UK-based acquirers) 430 22 14 In/Out deals from regionTransactions with target and acquirer in the same country within region Transactions with target and acquirer from different countries within region X X X X 246 74 12 0 25 0 103 12 North AmericaIn: 49Out: 79 54 11 2 2 7 10 9 7 5 1 1 1 2 1 1 1 2 4 5 36 3 1 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 spaceWE HAVE LOOKED AT WHERE THE TOP 10 SERIAL ACQUIRERS IN 2019 HAVE BEEN INVESTING 222244––77222––– The Top 10 serial acquirers in 2019 was no longer dominated by the Global Networks, with their share within the top 10 now less than 50%. This is consistent with the overall trend of their deal activity, which has been falling significantly since 2016 Next15, S4, Finn Partners, Alpine, Altavia, and Lieberman Research were new entrants to

8 the top 10 serial acquirers in 2019 Top
the top 10 serial acquirers in 2019 Top 10 acquirers were responsible for 7% of total transactions in 2019 vs. 8% in 2018 Key TargetGeographiesAsia (5)Europe (3)N. America (2)Australasia (1)Latin America (1)Europe (6)N. America (3)◦Australasia (1)◦C. America (1)N. America (4)Europe (4)Europe (4)N. America (1)Asia (1)Australasia (1)Latin America (1)N. America (3)Europe (2)Australaisa (2)Europe (3)N. America (2)Asia (1)Asia (3)Europe (2)N. America (1)N. America (5)Europe (2)Africa and Middle East (2) Asia (1)N. America (5) 85 transactionsin 2018vs. 73 transactionsin 2019A total ofA total of2016201720182019 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 spaceNotes: Value denotes the Implied Enterprise Value of the target; Converted into USD at announced dateNOTABLE TRANSACTIONS ANNOUNCED IN 2019Some of the largest transactions in 2019 were… ANN. DATETARGETTARGET DESCRIPTIONACQUIRERVALUE$MMar-19TranzactUS-based end-to-end customer acquisition solutions providerWillis Towers Watson1,335Apr-19Droga5US-based creative and strategic agencyAccenturen.a.Apr-19EpsilonUS-based data driven

9 marketing companyPublicis4,400Jun-19Tab
marketing companyPublicis4,400Jun-19TableauUS-based business analytics software providerSalesforce16,322Jul-19KantarUS-based data, insights and consulting companyBain Capital4,00051% of deals involved non-traditional Marketing Services acquirers ANN. DATETARGETTARGET DESCRIPTIONACQUIRERVALUE$MMar-19Dynamic YieldUS-based UX personalization platformMcDonald’s300May-19PervormNL-based digital marketing agencyDeloitten.a.May-19Sizmek(Ad server & DCO)US-based ad server and dynamic creative optimization technologies of Sizmek Amazonn.a.Oct-19DataXuUS-based demand-side-platformRoku149Dec-19ExozetDE-based digital agencyEndavan.a.14% of the deals were led by financial investors ANN. DATETARGETTARGET DESCRIPTIONACQUIRERVALUE$MJun-19TeneoUS-based communication advisory firm CVC Capital Partnersn.a.Jul-19VungleUS-based performance marketing platformBlackstonen.a.Sep-19AcquiaUS-based digital experience cloud-based platformVista EquityPartners1,000Oct-19CisionUS-based PR and Marketing communications softwarePlatinum Equity2,783Dec-19DeptNL-based digital agencyCarlylen.a.Other notable transactions ANN. DATETARGETTARGET DESCRIPTIONACQUIRERVALUE$MJan-19TrendkiteUS-based PR softwareCision224

10 Mar-19Hjaltelin StahlDK-based multi-chan
Mar-19Hjaltelin StahlDK-based multi-channel marketing agencyAccenturen.a.Mar-19BrainlabsUK-based technology-led digital marketing agencyLivingbridgen.a.Sep-19CrossixUS-based data analytics platformVeeva432Nov-19JellyfishUK-based digital agencyFimalacn.a. JEGI | CLARITY transactions in 2019 A seamless combination of KNOWLEDGE, INSIGHT AND EXPERTISE JEGI | CLARITY  THE LEADING M&A ADVISORY FIRM FOR THE GLOBAL MEDIA, INFORMATION AND MARKETING, SOFTWARE AND TECHENABLED SERVICES SECTORS Mobile & InternetData & AnalyticsContent & InformationCloud & SaaS\r\f \n\t\r\r\t\b\f\r\r\t\t

11 9; I am super happy we chose JEGI |
9; I am super happy we chose JEGI | CLARITY to advise. Going into a process I wasn’t sure what the difference or value add would be; on the other side I can confidently say that they were 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. I would recommend them in a heartbeat! Daniel Gilbert Chief Executive Officer, Brainlabs This is the second time we have worked with the team and put simply we would never do another deal without them by our side. Wesley ter Haar and Victor KnaapCo-Founders, MediaMonksWorking with entrepreneurs, founders, private equity firms, and global corporations Over 60 people across London, New York, Boston and Sydney Deep sector knowledge, providing out-of-market opportunities and outcomes Track record of surpassing client expectations Note: Selected JEGI | CLARITY transactionsWE REMAIN INCREDIBLY ACTIVE ADVISING RIGHT ACROSS THE MARKETING LANDSCAPE  &#

12 18; The Monkeys and Maud are leading Au
18; The Monkeys and Maud are leading Australian agencies.Framestore is a leading VFX studio servicing the global featured film, advertising, and content markets. FuseFX is a leading independent visual effects studio providing services for episodic television, feature films, commercials, and VR productions.Accordant is a leading data-driven, full-service programmatic advertising company and technology solution provider.    Resource/Ammirati is a leading, US-based digital marketing and creative agency.Selligent is an international SaaS platform delivering omnichannel audience engagement.RKG is a leading tech-enabled search and digital marketing agency.adam&eve is a leading creative advertising agency.  \r\f 

13 ;\n\t Brand Learning
;\n\t Brand Learning is a leading marketing and sales capability consultancy.True Clarity is a leading ecommerce and experience platform services provider.Webcollage is a leading product content management SaaS platform for global brands and retailers.Blue 449 is a leading UK media agency.ProSites is a leading provider of subscription-based digital marketing solutions for local community professionals.JKR is a leading design-led creative agency.TOPO is a leading research and advisory firm.Hjaltelin Stahl is a leading Danish multi-channel experience agency.SmartBrief is a leading digital media publisher of targeted business news and information by industry.MERGE is a leading integrated healthcare and technology deployment agency.Brainlabs is a leading technology-led digital marketing agency.MediaMonks is a leading global creative production platform. T3 is a leading CRM and digital design/innovation agency.MeritDirect is a leading provider of multi-channel B2B database products and services solutions.OPEN Health is a leading multi-disciplinary health communications and market access group.DEPT is a leading independent digital agency. 

14 ; 
;      \r     LONDON 90 Long Acre London WC2E 9RA +44 20 3402 4900 SYDNEY L35, Tower One International Towers 100 Barangaroo Avenue Sydney, NSW 2000 +61 2 8046 6840 NEW YORK 150 East 52nd Street 18th Floor New York, NY 10022 +1 212 754 0710 BOSTON One Liberty Square 11th Floor Boston, MA 02109 +1 617 294 6555 Global Marketing Industry M&A Rep

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