London-based Dentsu Aegis Network has signed an agreement to acquire a majority stake in Merkle, a global data-driven, technology-enabled performance marketing agency.
Merkle, a major agency in the U.S. for CRM, digital, and search, should accelerate Merkle’s ability to grow as a global agency. The deal is slated to be completed by September 30, 2016.
“U.S.-based Merkle has grown rapidly from its heritage in data and technology, combining a deep understanding of first-party data, sophisticated analytical capabilities, and comprehensive digital media capabilities,” noted the company’s announcement. “As a true pioneer of “people-based marketing,” Merkle is one of the few providers who can deliver data-driven, technology-enabled marketing solutions to large corporations, helping them improve customer engagement, advance competitive positions, and maximize return on marketing.”
Merkle, which offers a wide range of services including data and analytics, marketing technology, digital agency services, and consulting, earned $436 million in revenues in 2015, an increase of 14 per cent on 2014.
Dentsu Aegis’s strategy is to become a 100 per cent digital economy business by 2020 and the addition of Merkle will accelerate this ambition as well as significantly enhance the Network’s global operations.
David Williams, Merkle’s Chairman and CEO, believes the fit is perfect.
“As we considered a new investment partner, we sought a fit that would complement our vision, escalate our brand, and provide growth opportunities for our people, while also valuing Merkle’s unique strengths and culture,” Williams said. “Becoming a part of Dentsu Aegis Network further strengthens our position and allows us to accelerate our goal of being a world-class Global performance marketing agency.”
Merkle’s offerings are a good match with Dentsu Aegis’s capability in media, performance, content, and brand commerce.
“It will become one of the Network’s leading agency brands, and the combination is expected to deliver significant revenue growth opportunities, through collaboration providing new capabilities and benefits to both of our clients,” according to Merkle.
Dentsu Aegis CEO Jerry Buhlmann is upbeat about the future that will result from the move.
“We have long admired the Merkle business, brand and people and are delighted that they are becoming part of our Group, complementing our existing offer to clients and strengthening our competitive advantage at the forefront of the rapidly growing digital economy,” Buhlmann said.
