Advertising Mergers & Acquisitions: July 2018
In July 2018, notable completed advertising mergers and acquisitions included Gannett's $130 million purchase of digital marketing firm WordStream to enhance its digital capabilities, Centene's $3.75 billion acquisition of New York-based health insurer Fidelis Care to expand managed care presence, and the $18.7 billion merger of Dr Pepper Snapple Group with Keurig Green Mountain forming Keurig Dr Pepper, the seventh-largest U.S. food and beverage company, amid a global M&A market reaching a record $2.51 trillion in deal value despite fewer transactions.
Our June report called out 122 completed deals that cost over $176 billion in total. The $63 billion acquisition of Monsanto by Bayer as well as the $85 billion merger of AT&T and Time Warner made up 84% of that amount. This year, the value of global merger and acquisition deals have actually reached an all-time high of $2.51 trillion, which is a 64% increase over the same period last year (although the number of individual deals has decreased). The last time the numbers were this high was right before the recession in 2008.
Going forward, MediaRadar’s advertising mergers and acquisitions posts will be weekly. Let’s take a look at the completed acquisitions and mergers from the month of July.
Completed Deals
These deals have gone through all necessary steps and have been completed.
-
WordStream, Inc. Acquired by Gannet Co., Inc.
Gannett Co., Inc. (NYSE: GCI) has completed its acquisition of WordStream, a digital marketing firm that helps businesses improve their paid search and social campaigns, for $130 million. Gannett hopes that the addition of WordStream will help bolster its own digital marketing capabilities.
-
Fidelis Care Acquired by Centene Corporation
Centene Corporation has completed its acquisition of Fidelis Care, a New York-based health insurance company, for $3.75 billion. The addition of Fidelis Care will give Centene a strong presence in the managed care market in New York state.
-
Dr Pepper Snapple Group, Inc. Merged with Keurig Green Mountain, Inc.
Keurig Green Mountain and Dr Pepper Snapple Group have successfully merged in a deal worth $18.7 billion. The new company, Keurig Dr Pepper (NYSE: KDP), is now the seventh-largest food and beverage company in the nation. The combination of the two powerhouse companies shores up the scale, portfolio, and selling and distribution capabilities of their respective iconic brands, which include soda brands like Dr Pepper, 7UP, and Sunkist as well as coffee brands like Green Mountain Coffee and Keurig, among many others.
-
FanDuel Group Acquired by Paddy Power Betfair
Paddy Power Betfair (OTCMKTS: PDYPY) has acquired the daily fantasy sports giant, FanDuel. The combined company is the largest online sports destination in the United States. FanDuel, now operating as FanDuel Group, will be made up of several brands, including FanDuel, TVG Network, Betfair Casino, and DRAFT. The new enterprise will have a presence in 45 US states and reach approximately 8 million customers.
-
First Aid Beauty Acquired by the Procter & Gamble Company
American multinational corporation, Procter & Gamble (NYSE: PG), has acquired prestige skin-care brand, First Aid Beauty, for approximately $250 million. First Aid Beauty joins P&G’s growing list of beauty acquisitions, which includes Olay, SKII, Aussie, and Herbal Essences. Joining P&G will allow First Aid Beauty to further cultivate their global presence and advance their in-house product development capacities. At the same time, it represents P&G’s effort to regain market dominance in the beauty and skincare industry that they lost when they divested 43 of their beauty brands to Coty, Inc. (NYSE: COTY) in 2016.
-
Centaur Holdings Acquired by Caesar Entertainment Corporation
Gaming conglomerate, Caesars Entertainment Corporation (NASDAQ: CZR), has acquired privately held casino operator, Centaur Holdings, LLC, for $1.7 billion in cash. Caesar’s footprint will expand across the central Indiana region with gaming operations like Hoosier Park Racing & Casino and Indiana Grand Racing & Casino joining its portfolio in the acquisition.
-
Taco Del Mar Acquired by High Bluff Capital Partners
Private-investment firm, High Bluff Capital Partners, has acquired the fast and casual Mexican restaurant chain, Taco Del Mar. The acquisition comes less than a month after High Bluff Capital acquired Quiznos. The investment firm believes that Taco Del Mar’s “well-established heritage in the Pacific Northwest” is “an excellent foundation to build upon” with the injection of capital, scale of operations, and management expertise that they can deliver.
-
Quartz Media LLC Acquired by Uzabase, Inc.
U.S.-based business news website, Quartz, has been acquired by Japanese financial publishing company, Uzabase, Inc. (TYO: 3966). The acquisition cost between $75 million and $110 million; the final valuation will depend on Quartz’s performance for the full year. As part of the deal, Quartz will assume control of the English version of business news platform, NewsPicks, which launched in the United States as a joint venture with Dow Jones & Co. in mid-2017. For Uzabase, Inc., the current acquisition represents a calculated effort to expand into the US and Europe by leveraging Quartz’s monthly readership of approximately 20 million people.
Related
Advertising Mergers & Acquisitions: June 2018
In June 2018, major completed mergers and acquisitions included Eli Lilly's $1.6 billion purchase of immuno-oncology firm ARMO Biosciences to enhance its cancer treatment pipeline, Anthem's acquisition of palliative care provider Aspire Health to expand its medical care services, and AT&T's $85 billion acquisition of Time Warner following judicial approval despite a DOJ appeal.
Advertising Mergers & Acquisitions: Aug. 1 - 17, 2018
Between August 1-17, 2018, notable advertising and brand-related mergers and acquisitions included AT&T's $1.6 billion acquisition of ad-tech company AppNexus to expand its global advertising analytics, Douglas Elliman Real Estate's purchase of NYC townhouse specialist Vandenberg to strengthen its single-family home market presence, and Salary.com's acquisition of Compdata Surveys & Consulting to become the third largest compensation data provider, amidst a broader context of 123 deals worth $55 billion across industries.
M&A Report: TMZ, Fertin Pharma and Fishbowl Media In the News
This week's M&A report highlights Fox Entertainment's acquisition of TMZ and its associated media properties to expand digital and unscripted content, Philip Morris International's $820 million purchase of Fertin Pharma to advance its smoke-free product goals with oral delivery systems and nicotine replacement therapies, and Glassdoor's completion of its acquisition of Fishbowl Media.
M&A Report: Nike, The Maven Coalition and Salesforce In The News
This week’s M&A report highlights Nike’s strategic acquisition of AI-driven retail analytics platform Celect to enhance its direct-to-consumer inventory forecasting, Maven Coalition’s $16.5 million purchase of financial news site TheStreet to expand its media portfolio alongside Sports Illustrated, and Salesforce’s continued business expansion following its $15.7 billion Tableau deal with the acquisition of workforce management software ClickSoftware.
M&A Report: Microsoft, WeWork and EssilorLuxottica In The News
This week's M&A report highlights Microsoft's acquisition of data security firm BlueTalon to enhance Azure's data management, WeWork's exclusive talks to buy real estate software startup SpaceIQ to bolster its tech image ahead of a potential IPO, and EssilorLuxottica's ongoing expansion in the global eyewear market through its planned acquisition of Dutch eye-care retailer GrandVision NV.
M&A Report: Maxim Integrated, U.S. Concrete and The Hill In the News
This week’s M&A report highlights Analog Devices’ $21 billion acquisition of Maxim Integrated to expand chip production into automotive and data center markets, Vulcan Materials’ $1.294 billion merger with U.S. Concrete to strengthen its presence in Texas and Northeast construction aggregates markets, and Nexstar Media Group’s purchase of The Hill.