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.