Marketshare - Market overview - June 2022
Growth consulting firm Next Fifteen Communications holding group has made a bid for international advertising agency M&C Saatchi, which has been accepted and now declined by the board. Next Fifteen had made a $381 million takeover offer in May but since that time its shares have fallen in value by as much as 30%, degrading the total value of the deal. The board of M&C Saatchi no longer found the deal "fair and reasonable". Both firms are highly complementary in terms of strengths and strategies and clients. This deal makes sense as it adds M&C’s Brand Strategy / Brand Experience specialty in an upstream positioning and offering for the combined entity. M&C Saatchi has previously rejected an offer from its deputy chair, Vin Murria, which valued the company at GBP 254 million (USD 309m). The board of M&C Saatchi believes both offers are now “inferior” to the company’s standalone prospects. All eyes are now on M&C Saatchi as to what their next move will be.
Customer experience seems to be the theme of the month:
Digital agency DEPT acquires digital creative agency Dogstudio in Belgium as they look to grow capabilities in experiential design, Web3, and digital customer experience.
S4 Capital acquires innovation and engineering partner TheoremOne. TheoremOne has over $58m revenue in 2021. S4 will add capability that helps major enterprises achieve strategic digital transformation, and be an innovation and engineering partner to Global 1000.
Publicis Groupe acquired ecommerce software, Profitero for around $200m. Profitero offers digital-commerce software and services for brands, including offerings that help clients compare prices with competitors, monitor product availability and track customer ratings and reviews. The deal will help Publicis clients grow their online sales and gain market share.
ESG capabilities continue to be in high demand globally. We see firms with double-digit growth and looking to expand abroad to better service clients in different regions.
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