Yefira-The Marketshare

In this week's edition, we explore the vibrant landscape of M&A with a particular focus on the dynamic activities in the private equity and holding group sectors, as well as the ongoing trend of acquisitions in the digital marketing agency space.

Private equity firms continue to demonstrate their active involvement in acquisitions, seeking strategic opportunities for growth and value creation. Notable examples include Brookfield Asset Management's acquisition of digital commerce firm Network International in Dubai, One Equity Partners' acquisition of creative and technology group MSQ Partners in the UK, and Blackstone Portfolio Company R Systems' acquisition of digital product engineering company Velotio Technologies in India. These deals highlight the strong interest of private equity firms in diverse industries and regions.

Meanwhile, holding groups are also making strategic acquisitions to expand their digital capabilities and broaden their service offerings. The UK-based Brandtech Group's acquisition of digital marketing agency Jellyfish and Publicis Sapient's acquisition of e-commerce company Corra showcase the proactive approach of holding groups in strengthening their positions in the market.

The digital marketing agency space continues to witness a flurry of acquisitions, with smaller-sized agencies being sought after by larger industry players. This trend reflects the growing demand for specialized digital marketing expertise and the consolidation happening in the industry. As the market evolves, these acquisitions provide opportunities for agencies to scale their operations and offer a wider range of services.

Some recent highlights:

UK: Brandtech Group Acquires Digital Marketing Agency Jellyfish

• Jellyfish has 2,389 employees.
• Jellyfish is certified across platforms including Google Marketing Platform, Google Cloud, Salesforce Snap, Amazon and other major social platforms.
• The deal gives Brandtech added expertise in leveraging major digital marketing platforms and helping clients connect content, data and media that it can apply across its global network.
• Jellyfish has been majority-owned by French holding company Fimalac since November 2019 and as part of the acquisition, Fimalac will be one of Brandtech’s largest shareholders.
• With the acquisition, Brandtech will claim more than $1 billion in revenue.
• Jellyfish is The Brandtech Group’s ninth acquisition since the firm’s founding in 2015 and comes after a July 2022 deal to acquire AI-driven e-commerce SaaS platform Acorn-i.

Dubai: Brookfield Asset Management Acquires Digital Commerce Firm Network International

• Network International has 1,747 employees.
• Network provides a suite of technology-enabled payment solutions to merchants and financial institutions of all types and sizes in the Middle East and Africa.
• Under the terms of the deal, Network shareholders shall be entitled to receive 400 pence in cash for each share held. It values the issued and to be issued share capital of Network at about £2.2 billion ($2.8 billion).
• Brookfield Business Partners expects to invest up to about $150 million with the balance of its equity investment to be funded by institutional partners.
• The firm has been an active investor in the Middle East since 1997 with over $5 billion of assets under management in the region.

UK: One Equity Partners Acquires Creative and Technology Group MSQ Partners

• MSQ Partners has 1,200 employees.
• MSQ combines tech and creative capabilities into one multi-disciplinary offering to deliver marketing solutions across the full range of a client’s C-suite priorities or through engaging specialist standalone services through its 11 agencies.
• The acquisition will serve as a platform for further consolidation within the tech-enabled marketing solutions and digital transformation sector.
• OEP has a track record of partnership with IT service and digital transformation businesses, where the firm applies industry expertise to lead transformational acquisitions and organic growth investments to drive growth in technological capability, geographic presence, and market share. 

Australia: Endava Acquires Software Company DEK Technologies

• DEK has 700 employees.
• DEK develops software and hardware solutions. It specializes in end-to-end project development, from initial design concepts to implementation, verification, delivery, and customer field support. The company caters to telecommunications, defence, IoT, cloud, oil and gas, renewable energy, automotive, and other sectors.
• With this acquisition, Endava demonstrates its strategy of diversification through M&A activities, further enhancing its Australian, Sweden and Vietnam operations.
• It has completed a trifecta of acquisitions of Australian headquartered businesses within the last fiscal year alone. These include the acquisitions of Lexicon in October 2022 and Mudbath in May 2023.

USA: Publicis Sapient Acquires E-commerce Company Corra

• Corra has 276 employees.
• Corra specialises in building flexible digital storefronts for growing brands across retail, food and beverage, technology and electronics, health and wellness, and B2B industries.
• Corra will become part of Publicis Sapient, Publicis Groupe’s digital business transformation company, and will augment Publicis Sapient’s existing expertise in commerce solutions, including Adobe commerce and Mach Alliance composable commerce solutions.
• The deal also extends Publicis Sapient’s offerings in digital and omnichannel commerce. 

India: Blackstone Portfolio Company R Systems Acquires Digital Product Engineering Company Velotio Technologies

• Velotio has 300 employees.
• Velotio combines complex engineering, data expertise, cloud-native, and design capabilities
• The acquisition expands its product engineering capabilities in the technology, media, and healthcare verticals and expands India delivery footprint to Pune.
• Velotio complements R Systems’ vertical presence and delivery capabilities in areas like Cloud, DevOps, Data Engineering, and Generative AI. 

USA: SymphonyAI Acquires Insights Platform 1010data

• 1010data has 202 employees.
• 1010data is a provider of analytical intelligence, enterprise analytics and collaboration capabilities to the retail, consumer brands, and capital markets sectors.
• The acquisition expands SymphonyAI’s Enterprise AI capabilities in Retail, CPG, and Financial Services.
• SymphonyAI is a SAIGroup company, backed by a $1 billion commitment from entrepreneur and philanthropist Dr. Romesh Wadhwani. 

Singapore: Gusto Collective Acquires Digital Marketing Agency Mercury Integrated

• Mercury Integrated has 47 employees.
• Mercury Integrated is an integrated agency that offers marketing consultancy, event management, public relations, digital and social marketing, and influencer engagement.
• The acquisition gives Gusto a pan-Asian presence and acts as the flagship office in the region.
• Gusto Collective acquired Shanghai-based Reuter Communications in 2020 and Hong Kong augmented reality specialist 26Hz in 2021.

Spain: Nagarro Acquires Software Development Company APSL.Tech

• APSL has 108 employees.
• APSL is an end-to-end services provider in application development, cloud systems, and data analytics.
• APSL's customer base includes leading Spanish and Global companies across sectors, including Tourism, Energy, and Public Sector, amongst others.
• The acquisition enhances Nagarro's services in the travel and energy industries and opens the growing IT services market in Spain.

USA: SoftServe Acquires Digital Agency Hoverstate

• Hoverstate has 100 employees.
• Hoverstate focuses on building mobile and web-based solutions for health insurance, pharmaceutical, and life sciences clients.
• Hoverstate has particular expertise working on the low-code Pega Platform from Pegasystems. The firm is a Pega Venture partner.
• SoftServe’s acquisition of Hoverstate will expand the firm’s capabilities in back-office process transformation on the Pega Platform.

USA: New Engen Acquires Marketing Agency LT Partners

• LT Partners has 56 employees.
• LT Partners specializes in strategic partnerships and performance marketing.
• The acquisition expands New Engen’s performance offering, to encompass an even broader array of publisher types spanning thousands of partners, including content, coupon, loyalty, influencer, sub-affiliate, affinity, toolbar/software, and shopping properties.
• The news follows the company’s acquisition of influencer marketing company, Acorn Influence, in December 2021.

USA: ICR Acquires Consumer Communications Agency Bullfrog + Baum

• Bullfrog + Baum has 39 employees.
• Bullfrog + Baum is a consumer communications agency specializing in hospitality, lifestyle, travel and consumer marketing.
• The acquisition of Bullfrog + Baum will add strategic and creative depth, additional tactical service offerings and vertical expertise
• Bullfrog + Baum is to be combined with ICR’s existing consumer lifestyle public relations and branding and creative teams to establish a new and distinct brand. The firm intends to announce the new brand in the coming months.

USA: Hawke Media Acquires Digital Marketing Agency Leverage Marketing

• Leverage Marketing has 23 employees.
• Leverage Marketing is a full-service digital marketing company. Besides earned media, paid media, and consulting, Leverage is also expert-level at integrating CRM systems into a company's marketing platform.
• Leverage Marketing also has a long track record of working with top brands such as Berkshire Hathaway, GORUCK, Belle Medical, and Brett Robinson Vacation Rentals across multiple industries including retail, technology, and finance.
• With this acquisition, Hawke Media adds Leverage Marketing's advanced use of software to streamline performance marketing and services to its repertoire of offerings.

Australia: IMPACT Acquires Digital Marketing Agency RedPandas

• RedPandas has 10 employees.
• RedPandas is a HubSpot Diamond Partner specialising in Marketing Automation and Lead Generation.
• The acquisition comes after years of RedPandas and IMPACT implementing a similar strategy of training clients to run their marketing independently.
• The deal values RedPandas at $15 million.

Belgium: Huble Digital Acquires Hubspot Partner Digitag

• Digitag has 17 employees.
• Huble is a HubSpot Elite Solutions provider, marketing & creative consultancy.
• The acquisition expands Huble’s European business activities.
• Revenues in the current year for both companies combined are ahead of expectations and estimated at over €17 Million.

USA: Granite Digital Acquires Majority Stake In Digital Division Of Creative Agency LCM247

• LCM247 has 12 employees.
• LCM is a creative agency and television production studio.
• The acquisition is projected to earn Granite $3m in new US revenues in the first 18 months and increase overall revenues to €13m this year.
• The deal is the latest in a series of 13 acquisitions by Granite, including four in the past two years (Continuum, Willows, Armour and Connector).

Australia: Internet of Things (IoT) telco Thinxtra raises US$3.3 million in pre-IPO funding round

• Thinxtra has 36 employees.
• Thinxtra provides and deploys scalable device-to-cloud IoT solutions.
• Thinxtra intends to invest in sales and marketing resources, as well as implement its inaugural partner program.
• Regal Funds Management was among the largest investors in this funding round. Other investors include Blue Ocean Equities.

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