Marketing & Communication Agencies Industry Bulletin

Equiteq reviewed M&A and investment trends in the disrupted marketing and communication agencies industry.

Digital transformation initiatives continue to be an overarching theme, with large enterprises looking to leverage data and technology to drive consumer engagement and sales. Despite a robust market with increased spending by clients on sales and marketing, traditional marketing and communication agencies have underperformed as they have been unable to capitalize on this opportunity. The agencies have not been able to adapt to how brands are spending marketing budgets and engage consumers.

Brands are moving towards managing the overall consumer experience by interacting directly with individual consumers on a one-to-one basis, rather than pushing a standardized message to broad groups. Brands are looking to software vendors, hardware vendors and consultancies which provide tools that enable digital strategies and one-on-one customer interactions. It is expected that marketing will migrate to a model where brands interact with consumers directly or via online platforms. Capturing and analyzing the data generated by customer interactions will be a critical function for marketing agencies.

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Sales Performance and Enablement Industry Bulletin

Equiteq reviewed M&A and investment trends in the growing sales performance and enablement industry.

Digital transformation initiatives continue to be an overarching theme with large enterprises looking to leverage data and technology to drive consumer engagement and sales. Sales performance and enablement sits at the intersection of training, management consulting and sales effectiveness. This mission critical function increasingly matters to overall business strategy and outcomes.

Clients are changing how they engage with sales improvement systems and how they spend related budgets. Equiteq expects these trends to continue with training organizations pursuing M&A as a means to ensure they have the necessary digital and data analytic capabilities to revitalize growth and support their client needs. While on the face of it, increased competition for deals should facilitate sales processes and more lucrative outcomes, preparation and timing remain critical.

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January 2020: Knowledge Economy M&A and Equity Market Update

  • Major deals profiled include NTT Data Services’ acquisition of Flux7, Accenture’s purchase of Clarity Insights and Atos’ acquisition of Maven Wave.
  • The Equiteq Knowledge Economy Share Price Index rose over the month.

NTT Data Services acquires Flux7, bolstering its AWS consulting capabilities.

Target: Flux7 is a US-headquartered company specialized in cloud implementation and migration, automation and DevOps consulting services.

Buyer: NTT Data Services is a US-headquartered provider of IT insights and solutions.

Deal insight: The acquisition of Flux7 forms part of three acquisitions announced by NTT Data Services in 2019. The buyer is bolstering its IT consulting capabilities across North America and the purchase of Flux7 adds consulting capabilities in the rapidly growing AWS’ public cloud. The deal also strengthens NTT Data Services’ capabilities in application modernization, a space in which it was named a leader in the Q3 2019 Forrester Wave for Application Modernization and Migration Services.

In April, Flux7 raised funding from NewWave Partners to invest in the expansion of its DevOps consulting services. Its acquisition by NTT Data Services will give Flux7 access to NTT’s global R&D capabilities and infrastructure. The deal will also enable Flux7 to offer its clients a broader set of digital transformation and innovation capabilities from an established global platform.

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