M&A in the UK media and marketing services sectors: Q1 2025
Activity down overall but private equity comes roaring back
85
deals completed
25%
technology-first marketing services deals
65%
deals backed by PE
Our view of the market
We are not surprised to see a decline in activity in Q1 2025, particularly given the economic headwinds companies operating in these sectors have had to contend with in recent months. This quarter, we report 85 completed deals – a 17% decrease on the 102 deals we recorded in Q4 2024. This level of activity is still in line with more subdued quarters in the last few years. However, it does indicate a more challenging environment for M&A, mirroring a more difficult business environment for media and marketing services companies.
Agencies are facing difficult times. Advertising budgets have stagnated, and many agencies have struggled to increase their fee income to keep pace with inflation. Staff costs are increasing as agencies compete to retain talent, which is key to delivering great quality work for clients, meaning margins are under pressure. The result is that timelines for desired sales have been pushed back, until such time as financial results improve to meet sellers’ expectations regarding valuations. This has led to a reduction in the number of businesses coming to market and underpins the reduction in activity.
The big global holding companies were noticeably less acquisitive last year, and recent share price volatility has made it more difficult for quoted groups to transact. The positive news is that private equity (PE) – particularly in the form of the PE-funded challenger groups – has really ramped up its efforts, with the result that almost two-thirds of Q1’s deals had PE involvement. We expect PE and strategic divestment by some of the larger networks to be the main drivers of M&A in the coming months.
Amidst the broader slowdown, one area that remained notably resilient was AI. We tracked seven AI-related marketing services deals in Q1 2025, reflecting growing acquirer appetite for tools that enhance operational efficiency, customer insight and campaign automation. Investor appetite is strongest for platforms that help agencies work smarter – with data-driven infrastructure, workflow automation and predictive analytics continuing to dominate deal flow. As adoption deepens and early-stage players begin to mature, we expect this to be a core driver of M&A, especially as PE and challenger groups look to future-proof their portfolios.
Quarterly deal volume
Q1 2025 deals by sector
Trending: Performance and media buying
Performance and media buying was the favourite marketing services category with acquirers this quarter. It made up 24% of all the marketing services deals we recorded. Performance marketing has become increasingly important as clients demand the ability to track ROI and optimise their advertising spend based on measurable results.
One of the largest performance and media buying deals in Q1 involved the sale of PE-house LDC’s portfolio company Blis to T-Mobile, in a transaction that valued the business at $175 million. Blis is a provider of privacy-centric advertising solutions with omni-channel targeting capabilities to connect brands with audiences. LDC invested in the company in June 2022 and has achieved an exit within the three-year timeframe targeted by most PE investors.
“Marketing technology has evolved from being a competitive advantage to an absolute necessity for brands. As digital transformation accelerates and consumer behaviour becomes increasingly complex, martech tools and platforms have become fundamental to how organisations connect with their audiences and drive business growth.”
George Hatswell, Director, Media Corporate Finance
Q1 2025 deal activity in the marketing services sector
Spotlight on: Martech
In the marketing services sector, while most deals involved the acquisition of traditional service-led agencies, 25% of the deals we recorded were technology-led. This is a higher percentage than any quarter in 2024 and demonstrates an increasing interest in technology-first agencies by acquirers.
50% of the technology-led transactions we recorded in Q1 related to martech companies – companies developing and using technology to assist with a digital marketing strategy, while 36% were adtech and 14% were mediatech.
Notable UK martech deals
In February, Nasdaq-listed, UK-headquartered, AI-driven commerce solutions provider Rezolve AI announced it was acquiring GroupBy, a Canadian provider of commerce site search and merchandising solutions, in a $55 million all equity transaction.
Also in February, Nasdaq-listed marketing technology company Banzai International completed the purchase of London-based Vidello, a technology provider of video hosting and marketing suite solutions for businesses, in a cash-and-share deal worth approximately $7 million.
Major holding companies
Notable transactions
Four of the major marketing services networks – IPG, Omnicom, WPP and Dentsu – made no new acquisitions in Q1. Publicis and Havas, who tied as the most acquisitive networks in 2024, continued their acquisition sprees, each completing three transactions.
Publicis started the year with the January announcement of its acquisition of Australian full-service media agency Atomic 212. In February, Publicis announced the acquisition of Brazilian influencer marketing and content company BR Media Group. In its press release, Publicis said the acquisition was driven by its expectations that influencer marketing would grow three times faster than traditional media channels across Latin America.
In March, Publicis announced it was to acquire US-headquartered data collaboration platform Lotame. A global operation, specialising in data, identity and technology, Lotame is one of the world’s largest end-to-end marketplaces, spanning 109 countries. Publicis said that, through combining its existing data and identity assets with those of Lotame, it would enable clients to reach 91% of adult internet users with personalised messaging at scale.
Neither Omnicom nor IPG announced any new acquisitions in Q1, which is unsurprising as their M&A teams were probably more inwardly focused on their own planned tie-up. The $13 billion deal, where Omnicom will acquire IPG, was first announced in December 2024 and cleared a significant hurdle in Q1, with both companies’ shareholders voting in favour of the plans. The deal remains subject to regulatory approvals and is expected to complete in the second half of 2025. In our Q4 report, we suggested that the merger could lead to Omnicom and IPG making certain strategic divestments as they looked to rationalise their existing interests and, in March, we saw IPG announce the sale of R/GA, a creative innovation specialist, to PE house Truelink Capital.
Havas also completed three acquisitions in Q1. In January, it announced it had bought Spanish sports marketing agency CA Sports. In February, it revealed that it had acquired a majority stake in Los Angeles-headquartered Channel Bakers, an e-commerce media agency specialising in retail media innovation. Later that same month, Havas announced the acquisition of independent creative agency DON, headquartered in Buenos Aires and Mexico City.
Challenger networks
We saw a lot of activity from the challenger networks in Q1. Stagwell made 11 acquisitions in 2024 and started 2025 at a similar pace. In January, it announced it was expanding its APAC division through the acquisition of ADK Global, an integrated marketing solutions network headquartered in Japan. It followed that in February with the news it was acquiring global sports marketing agency Gold Rabbit Sports.
Sports marketing was a popular theme in Q1. In January, AIM-listed digital media and martech company Brave Bison completed the acquisition of global sports marketing business Engage Digital Partners in a deal worth up to £10.6 million. Brave Bison has been re-evaluating its acquisition strategy following its failed attempt to buy MISSION last year. In March, Brave Bison announced it had acquired independent SEO, content and digital PR agency Builtvisible for £3.5 million.
Brave Bison has recovered from MISSION’s rebuffing by targeting alternative acquisitions. MISSION has focused on restoring value to its shareholders, through profit improvement measures and strategic divestments. In January, it announced it had sold its full-service agency April Six to US-headquartered Marketbridge for £17.4 million. MISSION will use the funds raised to reduce its debt levels and finance a share buy-back scheme.
UK-based events business CloserStill Media made two acquisitions in Q1. In February, it bought Digital Health Intelligence, a London-based media business that serves the UK’s digital health community. In March, it announced it was expanding its global technology portfolio with the acquisition of a majority stake in the largest AI industry event in the US, Ai4. CloserStill Media is owned by Providence Equity Partners, who is reported to be evaluating a potential sale of the group in a deal that could be worth more than £1 billion.
In February, Together Group announced the acquisitions of IMERZA and Visualisation One, specialists in digital twin technologies, immersive content production and digital animation.
After a quiet 2024, Equistone-backed independent out-of-home (OOH) media agency Talon revealed a renewed interest in M&A in 2025. It announced it was acquiring Out of Home Masters, the largest independent OOH specialist in the Netherlands.
Marketing services industry stock performance
Global stock markets exhibited high levels of volatility this quarter. Having had a positive run in Q4 2024, following Donald Trump winning the presidential election, the S&P 500 fell by 5%, as investors began worrying about the impact of the new president’s fiscal and foreign policies on the US economy. Despite the market turmoil in America, some regions of the world benefited from the Trump administration’s change in geopolitical strategy. European stock markets delivered their strongest quarterly performance in decades and the UK’s FTSE100 was up by 5%.
Weakness in the US and concerns that tariff policies will lead to higher consumer prices and a global economic slowdown do not play well for quoted marketing services companies. In anticipation of slower economic growth, investors are shifting out of high-momentum stocks into defensive, lower-valuation segments of the market, such as defence and infrastructure. The Moore Kingston Smith Marketing Services Index underperformed the market significantly, ending the quarter 8% down. Of the 13 companies in the index, only three ended the quarter in positive territory.
Q1’s star performer was Brave Bison, which saw its share price increase by 19%. As already mentioned, Brave Bison shrugged off the disappointment of last year’s failed attempt to acquire MISSION and started 2025 with a renewed focus on alternative acquisition targets. Investors have responded positively to its attempts to grow its market share. The company also benefited from a set of financial results which came in ahead of market expectations, with net revenue up 2% year-on-year and a 5% improvement in earnings.
WPP was our worst performer in Q1, primarily because its financial results fell short of market expectations. It reported lower net revenues than 2024 and a 2.5% fall in operating profits. Its share price ended the quarter down 30%.
Moore Kingston Smith Marketing Services Index Q1 2025
Private equity
Of the 85 transactions we recorded in Q1, 65% involved PE investment, either directly or via an existing portfolio company. This is significantly higher than the average 46% we recorded in 2024 and substantially higher than any quarter in the last three years.Apparently, PE investors are taking advantage of the straightened circumstances in which the quoted acquirers (who were in the driving seat last year) now find themselves, with depressed share prices making their equity less attractive as an acquisition currency. PE is stepping into the breach and particularly the PE-backed challenger networks are underpinning market activity. If interest rates start to come down slowly, as predicted, this could boost their activity still further.
Public markets have suffered in recent months, especially the market for new IPOs. As a result, PE investors who might have considered a flotation as a potential exit route are increasingly turning to secondary transactions – selling their investment to another PE house – as an alternative.
A prime example of this is the Q1 announcement that HIG Capital was to acquire UK-headquartered Kantar Media, the media research arm of Kantar Group, in a c. $1 billion transaction. Kantar Group is itself 60%-owned by private investment house Bain Capital, while the remaining 40% is owned by major holding company WPP, which sold a majority stake to Bain in 2019. Bain and WPP were widely reported to be considering an IPO of the entire Kantar Group in 2024. However, with the market for IPOs in the doldrums, they appear to have switched tack, now pursuing a break-up and divestment strategy, with the sale of more major divisions expected to follow the sale of Kantar Media.
Percentage of PE-backed deals
Notable UK PE-backed deals
In February, Bridgepoint-backed, Birmingham-headquartered, multi-channel marketing activation business ITG announced it was expanding into North America with the acquisition of US-based PureRed, an established provider of omni-channel content and technology.
In March, Equistone portfolio company ADM Group announced it was to acquire London-based Indicia Worldwide, an ROI-driven communications and production agency, from Konica Minolta. This is ADM’s fourth bolt-on transaction since Equistone invested in 2021.
Also in March, Sensor Tower, a US analytics firm backed by PE house Riverwood Capital, acquired UK-based Video Game Insights, which provides data and intelligence solutions for game developers, publishers and investors.
TV, film and entertainment
In the TV, film and entertainment sector, music transactions were the most popular with acquirers in Q1, accounting for 37% of the deals we recorded – a sizeable increase on the 24% in Q4 2024.
Content deals were the most prominent, accounting for 53% of the transactions, followed by production services deals, which accounted for 26%.
We saw a lot of interest in the UK TV production sector in Q4 2024, which continued in Q1 2025. In March, European production and distribution group Mediawan announced it was acquiring a 51% stake in the UK’s See-Saw Films, the company behind hit returning TV dramas, such as Slow Horses and Heartstopper. This is the latest in a series of high-profile deals for Mediawan, which already has a presence in the UK with production companies Drama Republic and Misfits Entertainment.
Notable UK TV, film and entertainment deals
In January, London-based Wise Music, sold its digital music education division, MusicFirst, to US PE house Achieve Partners to focus on its core business of music publishing.
Q1 2025 deal activity in the TV, film and entertainment sector
Publishing
B2B publishing was in the top spot in Q1, representing 46% of all the publishing deals we recorded. Consumer publishing came second, accounting for 27% of publishing transactions.
In our Q2 2024 report, we discussed PE house ICG’s acquisition of London-headquartered professional publishing and information business Law Business Research for a reported £650 million. ICG has now invested further in the business, by financing Law Business Research’s acquisition of US legal information and intelligence company ALM. ALM is itself owned by investment funds managed by EagleTree Capital, which will carve out, rebrand and retain ownership of ALM’s business and finance division.
Notable UK publishing deals
In January, the family-owned independent publisher Mark Allen Group, announced it was acquiring the 166-year-old Estates Gazette from the publishing giant RELX plc. RELX (formerly known as Reed Elsevier) had announced that it was to close the title, which covers UK commercial real estate, because it had been damaged by economic forces that have struck the whole of the property industry. Mark Allen clearly felt there was life in the title yet, and that the legacy brand would thrive within a smaller company environment.
In February, independent media business Kelsey Media announced the acquisition of Mortons Media, a publisher and organiser of specialist interest and hobbyist titles and events, covering such subjects as motorcycles, modelling, rail and gardening.
Q1 2025 deal activity in the publishing sector
Moore Kingston Smith media M&A highlights
Outlook
Against a backdrop of economic uncertainty and market volatility, driven largely by responses to the policy enactments of the new Trump administration, it seems likely that M&A in the UK media and marketing services sectors will also experience a degree of turbulence over the coming months.
Divestment following consolidation amongst the larger networks and renewed PE interest in the sectors are likely to form the key drivers of M&A activity this year. With possibly fewer quality targets coming to market, increased competition amongst PE-backed acquirers could lead to higher valuations for successful businesses.
“The next few months may be something of a bumpy ride, as the UK market adjusts to new economic realities, but there remains a substantial well-funded cohort of interested buyers for quality UK businesses.”
Paul Winterflood, Corporate Finance Partner at Moore Kingston Smith
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Methodology
In compiling our deal tracker we use Pitchbook, an international financial data provider that gives access to comprehensive data on the private and public markets. We analyse every deal with either a UK buyer or UK seller (or both) and where the target company is classified as marketing services, publishing or TV, film & entertainment, the transaction is entered into the deal tracker. We classify marketing services into sixteen sub-categories; TV, film & entertainment into seven sub-categories; and publishing into four sub-categories. As well as the data extracted from Pitchbook we have used information from the following sources: koresoftware.com, marketingdive.com, adexchanger.com, take1.tv, nftplazas.com, havasgroup.com, wpp.com, thedrum.com, deadline.com, businesswire.com, ft.com, fortune.com, themarketinpractice.com, antin-ip.com, wildstone.co.uk, media4growth.com, pehub.com. Any assumptions, opinions and estimates expressed in the information contained in this content constitute the judgment of Moore Kingston Smith LLP and/or its associated businesses as of the date of publication and are subject to change without notice. This information does not constitute advice and professional advice should be taken before acting on any information herein. No liability for any direct, consequential or other loss arising from reliance on the information is accepted by Moore Kingston Smith LLP or any of its associated businesses.
