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After Digitas, Ad Agencies Look To Next Big—Or Even Small—Digital Acquisitions

With Publicis Groupe’s $1.3 billion offer to buy interactive shop Digitas old news by now, the ad industry is now focused on the next big independent digital agency purchase. For one thing, not satiated by the pending Digitas purchase, Publicis and its agencies (Leo Burnett, Saatchi & Saatchi and Fallon) are said to be looking for additional acquisitions opportunities in the digital space. Other ad holding companies, like Havas, are also looking to fit a creative interactive agency within their walls. 
Adweek lists the likely targets:
AKQA: apparently being shopped by its majority owner, private equity firm Francisco Partners, for over $200 million. Clients include Microsoft and Visa and 2006 revenue is estimated at nearly $70 million, up 33 percent.
Deep Focus: Considered a very realistic acquisition prospect; the Brooklyn, N.Y.-based Web shop works for several movie studios and is small enough to be absorbed easily into the traditional agency structure
Special Ops Media, a New York agency that works for Dell and JP Morgan
Reprise Media: search engine marketing services agency; clients include CapitalOne, PeoplePC and Guess jeans.
Least likely candidates: Avenue A/Razorfish: aside from a nearly $2 billion market capitalization, its ad-serving and performance media units would not be normal fits in an ad holding company. Similarly, 24/7 Real Media, has a strong agency business in the hot search market and a top ad network, it would still present the same challenges, Adweek notes, yet at a more manageable price tag based on its $500 million market capitalization. Lastly, ValueClick, one of the Web’s top ad networks, has response-driven placements across thousands of small and midsize Web sites, and a lead-generation business. But like aQuantive, it would be a big bet, boasting a $2.3 billion market capitalization. Also,
Presumed out of reach: Dallas-based pharmaceutical interactive shop imc2 (not interested in selling); Scottsdale, Az-based iCrossing, which took a $15 million round of venture capital investment in July, is looking to buy, not be bought.
Related: Digitas Tries “Free Run” Around Global Advertising Obstacle Course
Publicis Groupe Tries Shoring Up Interactive Services With Digitas Deal

Jan 3, 2007 9:35 AM ET

Posted In: Advertising

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Comments (1)

Aug 27, 2008 11:11 PM

Should add Gasta.com to the list they are expanding rapidly with their amoebic white label olution and the UK biggest property url portfolio.

Anthony Carlise

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