Although marketing industry deal activity was flat in 2013, the sector saw some eye-popping deal sizes, according to boutique investment bank Jordan, Edmiston Group Inc.'s (JEGI) annual review of mergers and acquisitions.
In 2012, many of the biggest deals in 2012 tracked by JEGI involved consumer brands (Yahoo, Kayak), with only two marketing industry mergers coming in above $1 billion (Dentsu/Aegis and Nielsen/Arbitron). By contrast, 2013 saw a preponderance of large marketing deals. Among all the acquisitions JEGI tracks, four of the top five were in its marketing and interactive services (MIS) sector.
Overall, the marketing sector saw 479 transactions valued at $45.1 billion, according to JEGI. That represents a near doubling of last year's tally, an astonishing growth figure -- that is, until you realize half that value is attributable to the $21.9 billion megamerger of Publicis Groupe and Omnicom Group, announced in July and expected to close this quarter. With POG removed from the equation, the total deal volume and deal value in the MIS category looked about equal to the previous year.