Agency M&a activity jumped by 126% in 2018, consultations with leading the pack

The advertising industry in the market of mergers and acquisitions was red-hot in the first quarter of 2018. He just doesn’t come from the usual suspects.

In a new report by R3 consulting found that the total value of these transactions soared by 126 percent in the first three months of the year, headed “nontraditional buyers”, as well as consulting giants violations of the business on Madison Avenue.

“Consultants and other non-traditional buyers are taking the lion’s share of the assets,” R3 principal Greg Paull wrote in the report. “The holding groups have their own internal problems, along with those of its shareholders, and that means more than enough other investors do not intervene.”

In January, February and March, was 100 Agency-related transactions in the amount of collective sales of $ 4.6 billion, compared to 94 deals worth $2 billion in the first three months of 2017. USA deals superior to the rest, showing a 366% growth year over year to 58 3.1 billion dollars.

In 2017, the aegis network Dentsu and wpp Led SIP and in the first quarter of 2018, only 14 percent of all registered transactions carried out by the Agency, and holding companies. Instead, consultants from accenture and capgemini, along with private investment firm Ocelot partners, dominated as monitored studies R3 S.

In March, accenture ranked first in the world two deals amounting to $420 million (Mackevision Germany for $ 210 million and digital shop Meredith Xcelerated marketing for us $210 million). For Meredith, the acquisition, accenture is the fourth largest in North America to No. 3 platform Evergage data, who bought MyBuys for $224 million, No. 2 from the software vendor amdocs, which purchased content developed by Vubiquity for $224 million and the No. 1 company capgemini, which acquired the interaction with the clients of the company LiquidHub for $303 million

(The purchase prices have been assessed at A3.)

Omnicom, one of the lone Agency and holding companies on the list P3, came in at No. 6 in March with the alleged purchase of 185 million U.S. dollars of the Agency, the snow companies.

Worldwide, capgemini was ranked 2nd place for “Accenture” for his LiquidHub acquisition and Ocelot No. 3 according to his estimates, by $ 248 million in the London Digital Agency the Open ocean.

“The customer base with whom the relationship and the money to aggressively expand into the marketing sector,” said Paul. “We expect that they will be equally active until the end of the year.”

Private equity firms like kkr and Ocelot, which led the mergers and acquisitions market in the Asia-Pacific region with its proposed acquisition of 80 million dollars world-Singapore sports trade “looking for strong growth margin for their investment,” said Paul.

The Agency holding companies, meanwhile, face numerous challenges that limit their ability to make major acquisitions. Their largest customers, including giants like P&G and Unilever, are looking to cut costs and bring more work in house to a greater extent to the Pressure from investors to optimize their global operations.

There is also speculation that the world’s largest such group, WPP, can unload certain assets following last weeks abrupt departure of CEO Martin Sorrell.

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