Publicis Worldwide in the USA, and the Kaplan Thaler Group to merge

Publicis New York, part of Publicis Worldwide in the USA, and the Kaplan Thaler Group, part of the Paris-based Publicis Groupe, will merge to form Publicis Kaplan Thaler, effective immediately. The combined New York-based entity, with over 650 employees, becomes the U.S. flagship agency within the Publicis Worldwide Network of over 200 offices in 82 countries. Publicis Kaplan Thaler will be Publicis Worldwide in the USA’s flagship New York agency.

Publicis Kaplan Thaler will be led by Linda Kaplan Thaler as Chairman and Robin Koval as CEO. Rob Feakins, President and Chief Creative Officer for Publicis New York will continue in that role and lead creative for the expanded entity.

Susan Gianinno, Chairman and CEO of Publicis Worldwide in the USA stated, “Publicis Kaplan Thaler will build on the strong performances of Publicis New York, which includes the successful integration of digital agency Modem, and the Kaplan Thaler Group, to create a more dynamic New York base. Publicis Kaplan Thaler is poised to lead the change for its clients and the industry.”

In making the announcement, Publicis Groupe COO and Executive Chairman of Publicis Worldwide, Jean-Yves Naouri, said, “New York is the largest communications community in the world. We are deeply committed to building a stronger base of operations in this market – one that attracts and retains the best talent in the world to build our clients’ brands.”

Publicis Kaplan Thaler is designing new offices and will be headquartered in one location starting in early 2013.

France, Paris & USA, New York, NY

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Care.com acquires Besser Betreut GmbH

Care.com, an online service in the U.S. used by families seeking high-quality care providers,  has acquired Besser Betreut GmbH, an online destination for care and service providers in Europe.  Terms of the transaction were not disclosed.

Based in Berlin, Germany, Betreut will become an operating unit of Care.com and will continue under its current name, while also serving as Care.com’s European hub under the Care.com Europe banner.  Steffen Zoller, Founder and Co-CEO of Betreut and Manuel Nothelfer, Co-CEO of Betreut, will continue to manage the organization, reporting to Ted Preston, General Manager, International and SVP of Operations for Care.com.

In making the announcement, Sheila Lirio Marcelo, Founder and CEO of Care.com, said, “We have always believed that care is a global issue.  By bringing together Betreut and its extensive international operations with Care.com, our leadership position in the U.S., and our new operations in the U.K. and Canada, we are creating a dynamic portal for families around the world that provides best-in-class services to help families find the local care they need.”

Founded in 2006, Care.com currently counts close to 5 million families and providers in the U.S. and its recently launched operations in the UK (April 2012) and Canada (July 2012).  Betreut, which was founded in 2007, has approximately 2 million members and providers across more than 15 countries, including Germany, Austria, Switzerland,  France, Scandinavia, the Netherlands, and Belgium.

Both Care.com and Betreut help families address the unique lifecycle of care needs that every family goes through – child care, including special needs; senior care, pet care; housekeeping, and tutoring.

USA, Waltham, MA & Germany, Berlin

Berkery Noyes releases first half 2012 M&A Report for the Media and Marketing Industry

Berkery Noyes, an independent mid-market investment bank, has released its first half 2012 mergers and acquisitions trend report for the Media and Marketing Industry.

The report analyzes merger and acquisition activity in the Media and Marketing Industry for the first half of 2012 and compares it with activity in the four previous six-month periods from 2010 to 2011.

Total transaction volume increased six percent during the last six months, from 784 transactions in second half 2011 to 834 in first half 2012. Meanwhile, total transaction value increased 27 percent, from $24.88 billion to $31.51 billion. Despite this uptick, median enterprise multiples in the industry decreased. The median revenue multiple fell from 1.8x to 1.2x and the median EBITDA multiple declined from 10.0x to 7.8x. However, three segments had median revenue multiples of at least 2.0x: B2B Publishing, Broadcasting, and Exhibitions, Conferences, and Seminars.

Marketing was the most active industry segment for first half 2012, accounting for 262 transactions and surpassing Internet Media in transaction volume during the last twelve months. Although Internet Media activity declined two percent compared to second half 2011, it remained 19 percent above its second half 2010 levels. In the Marketing segment, 47 percent of deals were Digital Marketing transactions, which represented a 10 percent improvement on a half-to-half year basis. WPP Group was the largest acquirer in the Digital Marketing sub-segment as well as the overall Media and Marketing Industry.

The segment with the largest rise in volume in first half 2012 was Exhibitions, Conferences, and Seminars with an 85 percent increase. The median revenue multiple in the segment also increased 26 percent relative to first half 2011, from 1.9x to 2.4x.

Consumer Publishing M&A rose 13 percent, improving for the third consecutive half year period. The segment was led in first half 2012 by Berkshire Hathaway’s acquisitions of Waco Tribune Herald, The Bryan College Station Eagle, and 63 daily newspapers from Media General. In addition, the B2B segment was responsible for three of the top nine deals by value and underwent a 10 percent increase in transaction volume.

M&A volume in the Entertainment segment increased for the fourth straight half year, growing 24 percent in first half 2012. The largest related transaction in first half 2012 was Lionsgate’s acquisition of Summit Entertainment for $700 million. Video games, a sub-classification of Entertainment, rose 30 percent in first half 2012 and accounted for 62 percent of the segment’s deals. There was also a 50 percent increase in social gaming transactions during the last six months. The most notable social gaming deal by value was GREE International’s announced acquisition of Funzio, a mobile game developer, for $210 million.

“As we predicted in the press release for our first quarter report, there has been an impressive increase in M&A pertaining to social gaming,” said Evan Klein, Managing Director at Berkery Noyes. “Of the many possible means of monetizing social games, enticing users to purchase virtual currency and other rewards continues to be the most lucrative model for generating revenue.”

A copy of the FIRST HALF 2012 MEDIA AND MARKETING INDUSTRY M&A REPORT is available here.

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TiVo to acquire TRA

TiVo is to acquire TRA, a media marketing and analytics software company whose products help advertisers, agencies and television networks improve advertising targeting, accountability and return on media investment. TRA matches television exposures from 1.5 million TV homes with specific purchase transactions. The new unit will be known as TiVo Research and Analytics.

Tom Rogers, CEO and President of TiVo said, “TV has long been the best medium for advertisers to influence what consumers buy. TRA has proven its platform can determine the effectiveness of TV advertising by connecting the exposure of ads to actual purchases, helping advertisers identify the right audience and get the most out of their ad dollars. TRA has driven a substantial client list of advertisers, agencies and networks with this proposition. With this new level of unique audience insights and analytics, TiVo will be able to provide insights nobody else has in an industry increasingly seeking alternative ways to measure audience behavior accurately while increasing efficiencies in media spending.”

TRA has more than 45 brand clients and 27 network clients including CBS, A&E Television Networks, ION Media, Procter & Gamble, Oscar Mayer and Starcom MediaVest Group, among others.

TiVo will pay approximately $20 million for TRA. TiVo expects the transaction to close this month. TRA’s revenue is on track to increase significantly in 2012.

 

USA, Alviso, CA

Argus Media acquires DeWitt & Company

Global energy and commodity price reporting agency Argus Media has acquired DeWitt & Company, a provider of market assessments and business intelligence to the petrochemical industries. Terms of the acquisition were not disclosed.

DeWitt provides valuable and unique intelligence on the global petrochemicals markets. DeWitt’s reports cover global trade and pricing for aromatics, olefins, butadiene, methanol, MTBE, hydrocarbon resins and other petrochemicals. Founded in 1973, DeWitt publishes nearly 200 price references, which are widely used for benchmark pricing and analytical purposes. DeWitt also performs bespoke consulting services and publishes multi-client studies.

Argus Media chairman and chief executive Adrian Binks said: “We are delighted to welcome DeWitt to Argus. DeWitt is a well known and respected brand within the petrochemicals sector and is a natural complement to Argus’ existing strength in crude oil, refined petroleum products and LPG. DeWitt has an excellent reputation for providing intelligent insight and detailed analysis to its impressive range of customers. We look forward to working with DeWitt to develop our combined product offering further.”

DeWitt senior vice president Edgar Acosta said: “We are very pleased to be joining Argus and benefiting from Argus’ international reach and wide product range. We will be able to offer enhanced services to our customers and we will be developing new products together to meet the needs of our combined customer base.”

UK, London and USA, Houston

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Digg sold to Betaworks for just $500K

Digg CEO Matt Williams has announced on the company blog that social media pioneer Digg has been sold to Betaworks. Details of the deal were not disclosed. However, the Wall Street Journal is reporting that Digg, once valued at more than $160 million dollars, was sold for just $500,000. The reason for the price drop is likely due to Digg’s lack of valuable technology

Digg has raised $45 million in four rounds of venture funding since its formation in 2004. None of dig’s employees are to join Betaworks.

Betaworks founder John Borthwick, who is to be the CEO of the new Digg, said “betaworks has acquired the core assets of Digg. Digg is one of the great internet brands, and it has meant a great deal to millions of users over the years. It was a pioneer in community-driven news. We are turning Digg back into a startup. Low budget, small team, fast cycles.”

USA, New York, NY & San Francisco, CA

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Ron Sachs Communications acquires What’s Next Marketing

Ron Sachs Communications has acquired What’s Next Marketing, a full-service social/digital media/marketing practice.

“In just three years of existence, What’s Next Marketing has made an extraordinary impact in the ever-evolving world of media and digital marketing — establishing itself as an emerging dominant player in the field,” said Ron Sachs, president and CEO of Ron Sachs Communications. “We respect and recognize that founder Ryan Cohn has been at the forefront of thought leadership about the convergence of media platforms – and his team’s abilities will be great assets for our firm.”

The Sachs firm acquisition includes all of What’s Next Marketing’s key staff, clients and resources. Cohn will head the Sachs digital media division. Key staff leadership at What’s Next Marketing joining the Sachs team includes Brian O’Toole, the digital operation’s creative director.

USA, Tallahassee. FL

CRISIL acquires Coalition Development

The McGraw-Hill Companies, Inc., a division of Standard & Poor’s has acquired Coalition Development, a privately-held U.K. analytics company, and its subsidiaries. Coalition provides high-end analytics to leading global investment banks and other financial services firms. Coalition will be part of CRISIL’s Global Research & Analytics business.

“This acquisition reflects our commitment to helping customers succeed in the knowledge economy and also our strategic focus on high-growth businesses,” said Harold McGraw III, Chairman, President and Chief Executive Officer of McGraw-Hill. “CRISIL is a leading provider of research and analytics services to the world’s top financial institutions and corporations. The acquisition of Coalition will expand CRISIL’s presence in the fast-growing high-end analytical space to reach more global customers and markets. CRISIL already operates in research centers located in Argentina, China, India and Poland.”

Coalition provides high-end analytics, mainly to leading global investment banks. The company was founded in 2002 and is headquartered in the U.K. Coalition deploys unique proprietary analytics and algorithms covering market size, revenue dynamics and human capital. Coalition’s analytics provide a clear, actionable picture of the markets and are used by boards, strategy teams and top management at leading investment banks.

Coalition Development Limited were advised by Osborne Clarke. Mike Turner led the transaction assisted by Thomas Colmer and Mathias Loertscher and Prashant Mara and Ranjini Ghose of OC’s India desk.  Sheppard Mullin Richter & Hampton LLP, led by Linda Giunta Michaelson, provided US assistance.

UK, London and India, Mumbai

The Reader’s Digest Association sells Its Lifestyle and Entertainment Direct Business to Mosaic Media Investment Partners

The Reader’s Digest Association has sold substantially all of its Lifestyle and Entertainment Direct business to Mosaic Media Investment Partners LLC.

The sale includes Direct Holdings Americas, Saguaro Road Records and many of the assets of Direct Entertainment Media Group. Reader’s Digest said, “The sale proceeds were not material.”

USA, New York, NY

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DiMi Telematics International acquires Green Genie

DiMi Telematics International, a cloud-based, M2M communications solutions provider, has acquired mobile app provider Green Genie.

Available for the iPhone, iPod Touch and iPad, Green Genie is an app that provides its users with a collection of green projects and resources, making it a comprehensive guide to sustainable living. It provides a breakdown of certified green products and technologies, glossary of green terms, collection of essential reading, links to the best green web sites and organisations, and links to various carbon footprint calculators. Users can also submit their own ideas, projects and resources. As of June 1, 2012, Green Genie had nearly 14,000 active app subscribers.

“In addition to providing DiMi with a new high margin revenue stream, Green Genie provides us with a powerful marketing platform that we can now leverage to aid our Company in achieving our underpinning mission: to reduce the collective carbon footprints of consumers, commercial businesses, government agencies and industrial enterprises on a worldwide basis,” stated Barry Tenzer, President and CEO of DiMi. “More specifically, Green Genie will allow us to take an innovative, fresh and responsible approach to building awareness of the DiMi brand and to ultimately promote our cloud-based M2M solution to prospective customers around the world.”

USA, New York, NY