Martech and adtech mergers jump 52%
Mergers and acquisitions amongst martech and adtech companies rose by 52 per cent during the first three quarters of 2019.
This is according to new figures from Results International, which compiled data on merger and acquisition deals in the marketing sector.
The study found that there were 1,057 total deals between Q1 and Q3 of this year, of which 636 were in marketing services and 421 in martech and adtech.
The biggest deal overall was Bain Capital's $4 billion acquisition of Kantar Media, while Vista Equity Partners' acquisition of Acquia for $1 billion and Blackstone's $750 million purchase of Vungle also featured amongst the period's headlines.
There were 133 agency deals during Q3 alone, making it the most active subsector of marketing. Roughly half of those were amongst full service and UX/UI businesses.
Meanwhile there were 86 adtech deals worldwide between Q1 and Q3, up by 83 per cent compared with the same period in the previous year. But, according to Results International, adtech is still attracting less private equity money than martech.
Across the entire marketing sector Dentsu was the biggest buyer, making ten acquisitions during the first nine months of the year. Insight Venture Partners came second, with Accenture in third position with seven deals.
Julie Langley, partner at Results International, said: “Accenture is leading the charge by some margin when it comes to management consultancies expanding their footprint in the marketing space. It has repeatedly shown the appetite to invest heavily in marketing services and digital transformation agencies, while others are either adding capabilities at a slower pace or are focusing on other areas of consultancy.
“With trade buyers continuing to seek to leverage data to know and engage with their customers at a hyper personalised level, and a continued flow of new entrants and new capital into the markets, there is unlikely to be subdued interest within the marketing services and technology space in the foreseeable future.”