Leonis Principal, Inc. (d/b/a “Leonis Partners”) and The Jordan Edmiston Group, Inc. (d/b/a “JEGI CLARITY,” and together with Leonis Partners, the “Parties”) have entered into a proposed combination agreement (the “Transaction”). The Transaction is subject to approval by the Financial Industry Regulatory Authority (“FINRA”) and in the UK by the Financial Conduct Authority (“FCA”). The Parties will continue to be two distinct entities and businesses until the Parties obtain FINRA's and the FCA's approval of, and close, the Transaction. Click here for more information.
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OMR25 | May 6 & 7, Hamburg

The OMR Festival | May 6 – 7, 2025

Location: Hamburg, Germany

We are excited to return to The OMR Festival again this year. The Festival is one of the world’s largest events for digital marketing and technology. 

As longstanding advisors to this community, we continue to deliver numerous landmark transactions across the Marketing Services and Technology sectors

Alternatively, contact Jonathan Davis or Jonathan Goodale directly.

Technology Services | Driving Business Transformation

Technology Services | Driving Business Transformation

JEGI CLARITY’S 21ST Annual Media & Technology Conference in New York brought together senior executives and investors from across the global media, marketing, information, and technology sectors.

Hugh Boston and Bob Lockwood explored the evolving landscape of the Tech Services sector, key industry trends, the impact of M&A, and winning strategies for tech businesses looking to stay competitive. Here’s a brief overview of their insightful presentation.

Technology services are at the core of business transformation, enabling organizations to operate more efficiently, scale effectively, and deliver greater value. With global IT services revenue projected to reach $1.88Tn by 2025¹, the sector is poised for continued growth.

Key Industry Trends

The Growing Demand for Digital Transformation

Technology services are increasingly seen as mission-critical for organizations seeking to modernize their operations. Businesses are prioritizing digital transformation initiatives, including cloud migration, software integration, and AI adoption. For instance, 75% of EPAM’s top clients are engaged in GenAI programs, underscoring its growing influence on business strategies.

Cloud migration continues to be a major focus, with companies accelerating their shift to cloud platforms to improve agility, scalability, and cost efficiency. This trend is driven by the need for businesses to remain competitive and respond quickly to market changes.

AI and Automation as Catalysts for Growth

Artificial intelligence is playing a pivotal role in transforming the tech services landscape. In 2024, Globant generated $350M from AI projects, while Accenture reported a $4Bn run rate for new GenAI bookings.

AI adoption is driving efficiency through automation, predictive analytics, and personalized customer experiences. Additionally, AI-powered data engineering, analysis, and cybersecurity solutions are becoming essential for businesses looking to safeguard their operations and optimize performance.

Post-COVID Revenue Growth and Stabilization

The tech services sector experienced a significant revenue spike in 2021 due to increased demand during the pandemic, which led to a temporary “COVID bump.”

Following a period of slower growth, the market is now stabilizing, with projected revenue increases of 4% to 5% annually through 2025. Companies like Accenture, CGI, and Cognizant are seeing renewed growth momentum, driven by rising client demand for digital services and consulting. This recovery signals a return to steady, long-term expansion in the tech services industry.

Increased Private Equity Interest

Private equity (PE) firms are heavily investing in tech services, drawn by the sector’s flexible, cash-flowing models and its growth potential. In 2024 alone, the deal value for North American tech services reached $44Bn, with $109Bn² in total global deal value. PE firms are particularly interested in platform-based acquisitions, creating large-scale service providers through strategic add-ons. This consolidation trend is enabling firms to expand their service offerings, enter new geographies, and target emerging customer verticals.

PE has been aggressively building platforms with add-on acquisitions:


The Impact of M&A on Tech Services

Driving Scale and Capabilities
Mergers and acquisitions are reshaping the tech services landscape by creating larger, more versatile players. Companies are pursuing M&A strategies to:

• Expand geographical reach – Acquiring firms in new regions to diversify their market presence.
• Enhance capabilities – Gaining access to specialized services, such as AI consulting or cybersecurity solutions.
• Increase customer verticals – Entering new industry sectors through targeted acquisitions.

Platform Growth and Add-On Acquisitions
PE-backed platform companies are actively acquiring smaller firms to scale their operations. This approach is driving significant growth, with add-on acquisitions accounting for a large portion of deal activity. This trend allows firms to rapidly expand their service portfolios while benefiting from economies of scale. It also makes them more attractive to larger buyers, creating favorable exit opportunities for investors.

Consolidation Among Major Players
The industry is witnessing significant consolidation among established tech service providers. Larger firms are acquiring smaller, niche players to offer integrated, end-to-end solutions. This creates stronger, full-service providers capable of meeting the growing demand for comprehensive technology consulting and implementation services.

To remain competitive in today’s fast-changing environment, tech businesses need to embrace fresh, forward-thinking strategies. Here are five essential approaches to fuel growth and boost marketing performance:

  • Prioritize AI-Driven Innovation – Tech businesses that embrace AI-driven solutions will be better positioned to capture market share. Investing in AI-powered data analytics, machine learning (ML), and automation tools can help companies improve efficiency, reduce costs, and deliver more sophisticated services for clients.
  • Leverage Cloud Migration Opportunities – With cloud adoption accelerating, tech service providers should focus on cloud migration expertise. Offering specialized services in cloud infrastructure, data engineering, and cybersecurity will attract clients seeking to modernize their operations.
  • Pursue Strategic M&A for Growth – Businesses should consider strategic acquisitions that enhance their capabilities and expand their market reach. This could include acquiring firms with complementary technologies or entering new geographical markets.
  • Focus on Customer-Centric Solutions – As businesses prioritize digital transformation, tech service firms should offer tailored solutions that align with their clients’ specific needs. Customizing services based on industry verticals and providing measurable ROI will strengthen client relationships.
  • Strengthen Cybersecurity and Data Capabilities – With increasing concerns around data privacy and security, offering robust cybersecurity solutions is essential. Investing in data protection, risk management, and compliance services will be a key differentiator.

The tech services sector is entering a period of sustained growth, fueled by digital transformation, AI adoption, and M&A activity. Companies that invest in AI, cloud migration, and strategic partnerships will be best positioned to capitalize on emerging opportunities. With private equity interest driving further consolidation and platform expansion, the sector is set to remain a key driver of business transformation in 2025 and beyond.

For further information, please contact Hugh Boston or Bob Lockwood

¹ Statista ((IT Services revenue consists of four markets: IT Consulting & Implementation, Business Process Outsourcing, IT Outsourcing & Other IT Services including system integration, software installation & support and IT education & training), ² Gartner, JEGI CLARITY

Marketing Services | The Evolution Accelerates

Marketing Services | The Evolution Accelerates

JEGI CLARITY’S 21ST Annual Media & Technology Conference in New York brought together senior executives and investors from across the global media, marketing, information, and technology sectors.

Hugh Boston and Marcus Anselm dove into the Marketing Services industry, highlighting how technology has increased the sector’s complexity. They also discussed the growing convergence of e-commerce and social media, and how firms can capitalize on this trend to tap into new revenue streams and strengthen customer engagement. Here’s a brief overview of their insightful presentation.

The marketing services industry is undergoing rapid transformation driven by technological advancements, shifting consumer behaviors, and evolving business strategies. There are key themes shaping the industry’s future, including the rise of AI, the increase of predictive analytics, greater focus on heightened personalization and automated content.

This article explores these key trends, their implications for businesses, and essential takeaways for firms in the marketing services sector.

Key Industry Trends

Acceleration of Digital Transformation

The marketing landscape has evolved significantly from traditional formats such as print, radio, and linear TV in the 90s to digital-first strategies encompassing search, programmatic advertising, and social media. By 2025, marketing spending is expected to reach $653Bn¹, 70% of which will account for digital marketing spend. This increase in marketing spending is driven in part by innovations in retail media, connected TV (CTV), and programmatic advertising.

The Expanding Role of AI in Marketing

AI is playing a transformative role in content creation, personalization, and predictive analytics. Key statistics reveal that AI adoption has led to a 50%² reduction in campaign time-to-market and a 40%² increase in click-through rates (CTR). Businesses are leveraging AI for ideation, A/B testing, chatbots, and optimization, with further expansion anticipated over the next two years.

Rising Influence of Social Media and Influencer Marketing

Social media advertising is expected to reach $256Bn by 2025³, highlighting the sector’s growing influence. Agencies specializing in influencer marketing, social media management, and data-driven advertising are attracting strong investment. The rise of social commerce, projected to reach $80Bn4 in the U.S. by 2025, underscores the increasing convergence of e-commerce and social media.

The Impact of M&A

Mergers & Acquisitions Driving Market Consolidation

The marketing services industry is witnessing increased M&A activity, as brands seek integrated solutions that combine creative, media, and technology capabilities. Omnicom and IPG are consolidating to form the world’s largest full-service advertising firm, reflecting a trend toward full-scale service providers while still maintaining demand for specialized agencies.

Private Equity Interest in Marketing Services

Private equity (PE) firms continue to invest heavily in marketing services, particularly in digital-first and AI-driven platforms. The increasing demand for data-driven, hyper-personalized campaigns has made marketing services an attractive sector for investment, with PE firms deploying over $2.1Tn5 in capital to capitalize on industry growth.

Winning Strategies for Modern Marketing Success

To stay competitive in today’s rapidly evolving landscape, businesses must adopt innovative approaches. Here are five key strategies to drive growth and enhance marketing effectiveness:

  • Adopt AI-Driven Strategies – Companies must integrate AI into their marketing efforts to improve efficiency, personalize campaigns, and enhance customer engagement.
  • Leverage Digital Growth Opportunities – With digital advertising spend surpassing traditional media, brands should prioritize digital channels, including CTV, programmatic advertising, and influencer partnerships.
  • Consider Strategic Partnerships and M&A – Businesses looking to expand should evaluate consolidation opportunities to enhance their service offerings and drive efficiency.
  • Capitalize on Social Commerce Trends – As e-commerce integrates with social media, businesses should invest in social commerce strategies to capture consumer spending shifts.
  • Stay Ahead of Industry Disruption – With continued transformation in marketing technology, businesses must remain agile, embrace new platforms, and leverage data-driven insights to maintain competitiveness.

The marketing services industry is poised for another year of growth in 2025, fueled by AI advancements, digital expansion, and increased M&A activity. Companies that adapt to these changes, invest in emerging technologies, and adopt integrated solutions will be well-positioned to thrive in this evolving landscape.

For further information, please contact Hugh Boston or Marcus Anselm.

¹ Winterberry Group, UK & US outlook for advertising, marketing & data (Feb-25), ² Bain & Company, For Marketers, Generative AI Moves from Novelty to Necessity (Feb-25), ³ Statista (Jul-24), 4 eMarketer, 5 Pitchbook

AI-driven Zero-Click Search | A New Era for Digital Marketing

AI-driven Zero-Click Search | A New Era For Digital Marketing

The rapid evolution of AI-driven zero-click search* is disrupting digital marketing, with major implications for performance marketing agencies. As search engines increasingly provide direct answers to user queries, traditional models reliant on SEO, PPC, and affiliate traffic are under pressure. Yet, while this shift presents challenges, it also unlocks opportunities particularly for social-first agencies and those adapting to AI-driven strategies.

*Zero-click search refers to a search engine result where the user’s query is answered directly on the search results page without requiring them to click on a website link. This often happens through featured snippets, knowledge panels, or AI-generated responses, reducing organic traffic to external sites.

The decline of traditional search-driven traffic is accelerating the acceleration of social media and influencer-led marketing. Platforms such as TikTok, Instagram, and YouTube are increasingly serving as primary channels for product discovery, predominantly among younger demographics.

  • Influencer marketing is poised to benefit as AI-driven search struggles to replicate the trust and authenticity of personal recommendations.
  • Social-first brands will thrive by leveraging video content, user-generated posts, and AI-powered ads targeting to capture consumer attention.
  • Programmatic and performance-based social advertising will see increased investment as brands diversify away from search-dependent models.

“Social media has become the primary discovery channel across all demographics. The trust, authenticity, and engagement it fosters now drive awareness, consideration, and conversion. In this search-light landscape, a social-first approach is essential—leveraging intelligence-driven creativity to make brands matter where consumers seek inspiration and recommendations.”

Juan Andres Elhazaz, CEO, SAMY Alliance

Opportunities for Traditional Performance Agencies

While SEO and PPC face headwinds, agencies that embrace AI-driven search and first-party data strategies can maintain their competitive edge, including the following:

  • AI-Optimized Advertising: Google’s Performance Max and dynamic search ads offer new ways to reach audiences, even as traditional search ads decline in effectiveness.
  • First-Party Data and CRM: With less reliance on search traffic, brands must prioritize direct customer engagement, loyalty programs, and personalized marketing.
  • AI-Friendly Content and Structured Data: Optimizing for AI-powered search responses through structured data and authoritative content can sustain visibility.

“AI-driven zero-click search is reshaping the PPC and SEO market, pushing brands to rethink how they capture consumer intent. As search evolves, and broadens beyond traditional search engines to generative engines, marketplaces and social platforms, our agency is prioritizing content that directly drives business outcomes, leveraging first-party data, AI-powered advertising, and social-driven discovery … owning the conversation at the point of discovery to drive measurable growth in an AI-first world.”

Luke Smith, CEO, Croud

Adapting to the Future

The age of zero-click search is here, forcing a strategic shift in performance marketing. Social-first agencies are well-positioned for growth, while traditional players who embrace AI, first-party data, and evolving ad formats will continue to thrive in this new digital landscape.

“AI will fundamentally change the customer journey which will require our firm to stay ahead of the latest innovations in new media formats, new creative formats, and evolving trends in media consumption at the channel level  in order to maximize our clients’ ROAS.”   

 Todd Porch, CEO, Strategus

Recent Market Activity: A Shifting Investment Landscape

With deep industry expertise, JEGI CLARITY remains at the forefront of digital marketing M&A, guiding Global Corporates, Challenger Agencies, and Investors through an evolving landscape. Our recent transactions highlight the increasing demand for AI, data-driven marketing, and social-first strategies:

  • Bridgepoint’s investment in SAMY – reinforcing the rise of social-first marketing agencies.
  • LDC’s investment in PreciseTV – reflecting the shift toward video-led discovery and targeted advertising.
  • ECI’s backing of Croud – emphasizing AI-powered advertising and first-party data strategies.
  • The sale of Strategus to CIVC Partners – underscoring the growing demand for data-driven CTV solutions.

These deals signal a clear industry pivot toward AI integration, automation, and audience-first marketing. As digital discovery evolves, businesses that harness AI-driven search, social engagement, and data intelligence will shape the next era of marketing success.

Click below to explore each transaction. For further information, please Contact us.

Power of 3: Digital Marketing Services | The Investment Opportunity

Power of 3: Digital Marketing Services

In our most recent Power of 3 series, Jonathan Davis and Hugh Boston,  ask three questions to three leading executives across the digital marketing services landscape.

This series features Juan Andres Elhazaz, CEO of SAMY Alliance, Alex Langshur, CEO Americas of Incubeta, and Glen Hartman, CEO North America of JAKALA. A big thank you to all the participants for their involvement.

Here we share some of their collective thoughts on the trends and opportunities ahead for the global digital marketing industry.

Back to business fundamentals & strategic optimization

Alex Langshur of Incubeta emphasizes the importance of focusing on core business fundamentals—people, clients, operations, and financials—before refining strategy. He compares leadership to a pilot navigating an emergency, prioritizing essential controls.

“You really need to focus on the fundamentals of the business, and then you have to be constantly looking at optimizing every one of those fundamentals.”

Alex Langshur, CEO Americas, Incubeta

AI as the future of digital marketing & business growth

All three CEOs stress AI’s transformative role across their industries. Langshur sees AI as the biggest growth driver for Incubeta, beyond creative applications. Hartman of JAKALA highlights AI-driven personalization and machine learning as key differentiators, while Elhazaz of SAMY Alliance notes AI’s role in shaping audience behavior and content trends.

M&A as a growth lever

Each company is expanding through acquisitions, targeting firms with strong data, AI, and specialized platforms expertise:

  • SAMY Alliance sees M&A as one key lever to achieve their vision of becoming a global and independent leader in social media marketing. They look for social-first companies with recurring revenue, data-driven capabilities, and ambitious leadership.
  • Incubeta seeks companies excelling in data/analytics, platforms specialization, scalable AI-driven processes and able to do digital creative optimization at scale.
  • JAKALA prioritizes firms that are strong in AI, machine learning, and retail media, particularly in North America.

The need for market differentiation

Hartman of JAKALA critiques the “sea of sameness” in marketing services and stresses the need for unique value propositions. He champions “The Big Integration”—aligning strategists, data scientists, creatives, and media experts to focus on end-customer outcomes rather than traditional client metrics.

“The biggest opportunity for JAKALA and all its clients is what I call the Big Integration—bringing together strategists, data scientists, technologists, and creatives to redefine success through the lens of the end customer.”

Glen Hartman, CEO North America, JAKALA

Elhazaz of SAMY Alliance emphasizes the dominance of social media in modern marketing, with brands leveraging platforms for audience insights, trend detection, and authentic engagement. He foresees social commerce as a major growth area.

“Social media marketing is becoming the heart of the marketing mix, where brands can truly understand their audience, detect early trends, and build authentic connections in a platform of trust.”

Juan Andres Elhazaz, CEO, SAMY Alliance

These leaders share a common vision: leveraging AI and data-driven strategies, scaling through strategic acquisitions, and differentiating their services to stay ahead in a competitive digital landscape. While their approaches vary, their focus on innovation, optimization, and integration reflects the future direction of digital marketing and business transformation.

Please click here if you would like to access the videos. Alternatively, if you want to learn about this series or the market more broadly, reach out to us at  Contact us

Power of 3: Digital Marketing Services | The Investment Opportunity

Power of 3: Digital Marketing Services

Digital Marketing Services | The Investment Opportunity

After facing challenges in previous years, the digital marketing services industry is experiencing renewed optimism, with social and influencer marketing consistently outperforming the broader sector. As a result, agencies are actively pursuing M&A, enhancing integrated capabilities, and leveraging AI and data analytics to drive growth and capitalize on market tailwinds.

In our latest Power of 3 series, we interview leaders from across the global digital marketing services industry to hear how they are staying ahead in an increasingly competitive and buoyant market. We explore their outlook for the year ahead, the key opportunities for their businesses—including from an M&A perspective—and their top priority areas for growth.

Full Interview Below

Juan Andres Elhazaz, CEO of SAMY Alliance speaks with Jonathan Davis
Alex Langshur, CEO, Americas of Incubeta speaks with Hugh Boston
Glen Hartman, CEO, North America of JAKALA speaks with Hugh Boston

2025 is the year AI will upend advertising

2025 is the year AI will upend advertising

On entering a meeting room in Brandtech’s offices in London’s towering Shard building, I find David Jones — chief executive of the $4 billion advertising group — hunched over his MacBook with a boyish smirk on his face.

I have been warned by one of his employees that Jones, an Englishman ordinarily in New York, has prepared some “entertainment” for me. “I have multiple pieces of entertainment,” he confirms with a chuckle. “Where do we start?”

It transpires that 20 minutes before my arrival, Jones, 58, has pulled five images of me from the internet and fed them into Flux, a text-to-image AI tool which he has taken a liking to. By tapping out a few simple commands, he generates ultra-realistic images of me wearing a tuxedo outside a Scottish castle and then, much to the hooting delight of his two onlooking PR advisers, standing topless on a Brazilian beach with a surfboard under my arm.

“This is what we can do now,” enthuses Jones, whose English accent comes littered with Americanisms after 20 years living in the Big Apple. “We couldn’t do this a year ago. Just think what we can do a year from now. It’s, like, mind-blowing.”

For now, he persists with his presentation. Next, he makes me watch a viral AI video that turned Donald Trump and Joe Biden into best friends, touring the US and dining together: “The speed of development is just insane.” Then he shows me Pencil, Brandtech’s own one-stop-shop generative AI tool. It was acquired in 2023 and is used by its multinational clients to create marketing materials. Jones shows me how it was utilised, for an experiment, to quickly create a hypothetical toothpaste that it named Plaque Slayer. “What’s interesting is the speed with which it comes back with something as good as humans would,” says Jones.

We are keeping a close eye on the business. When Jones started out, he faced some scepticism from critics who wondered how his company could stand out from the crowd. Ten years on, having made some impressive acquisitions, Brandtech has a distinct positioning; Jones’s investors will now be looking for a return on their investment.

Marcus Anselm, Partner at JEGI CLARITY

After two years of hype about artificial intelligence, it’s easy to glaze over and take for granted how fast technologies like this are evolving. But Brandtech’s boss, an ad industry veteran of more than 30 years, believes his sector is about to be upended.

Before Christmas, Coca-Cola made headlines — many of them fretful — when it unveiled a fully AI-generated “Holidays are Coming” advert. This year, Jones predicts, “every week, a major brand will be putting out a TV commercial they’ve created 100 per cent using gen AI”.

Clearly, he is not impartial. Ten years ago this month, he began fundraising to launch Brandtech as a business to take on the giants of the advertising sector — WPP, Publicis, Dentsu, Havas and the soon-to-merge Omnicom and Interpublic Group (IPG) — by buying up marketing technology. Today, with every big holding company in the sector investing in AI tools, Jones’s challenge is to ensure that Brandtech can establish a position at the forefront of marketing technology. He likens it to an “arms race”.

Jones, who lives with his French wife Karine and has four children, grew up in Cheshire, where he was privately educated. His mother was an artist and his father the chief executive of a textile business called Vantona.

He went on to study business at Reutlingen University in Germany and Middlesex University, before starting out in the ad sector as an intern at an agency called BDH in Manchester. A natural client man blessed with the gift of the gab, he worked across various agencies, before alighting at Havas, which is owned by the French billionaire Vincent Bolloré.

At the age of 38, Jones was made the chief executive of Havas’s Euro RSCG agency, a role in which he advised David Cameron on his 2010 election campaign. The following year, he was appointed chief executive of the wider group. He left just three years later, in 2014, and was replaced by Bolloré’s son, Yannick. Amicable? “Yes,” says Jones. “Vincent Bolloré was extremely keen for me to stay, and tried a few things to make that happen.”

From there, Jones went on to launch Brandtech, or You & Mr Jones as it was first known. Originally, the plan had been to tag “& Mr Jones” onto the end of each company he acquired — so, for example, Pencil & Mr Jones. He later thought better of it: “I may have a healthy ego, but … I didn’t want to make it all about me.”

At first, he raised $350 million from investment giants including Baillie Gifford, JAB and GIC, and then the company, which Jones says has been profitable since its second year, raised a further $200 million in 2019 and $115 million last year, giving it a private market valuation of $4 billion (£3.2 billion).

The pitch was was to create a tech-savvy outfit that could invest in new tools and thrive while the established ad companies were weighed down by the baggage of the past. The mission was to offer clients “better, faster and cheaper” services.

The “better, faster and cheaper” mantra is also championed by Sir Martin Sorrell, the WPP entrepreneur who left the ad giant amid allegations of misconduct and went on to become the founding boss of S4 Capital, a rival advertising start-up to Brandtech. So, who came up with the slogan? “It’s quite easy to work that out,” says Jones, with a short huff and a roll of the eyes. “There’s a little thing called the internet.” He points out that he used this phrase on launching Brandtech in 2015, three years before Sorrell’s controversial departure from WPP and his launch of S4 Capital.

Jones adds: “I think we’ve also been able to witness that S4 is not very good at technology, or doing marketing better, faster or cheaper. But we don’t even need to go there.” I disagree. What does he think has gone wrong at S4, whose market value has fallen from more than £4 billion in 2021 to £200 million today?

Jones doesn’t hold back, arguing that Sorrell was motivated to launch S4 Capital for the wrong reasons — “revenge” against WPP — rather than a desire to build a “great new company for customers and clients”. As a result, Jones thinks, S4 bought too many companies hastily, leading to a “total integration nightmare”.

“I know you guys in the UK think he is a genius,” says Jones. “Those of us not in the UK don’t.” He adds that Sorrell “has presided over more destruction of value in marketing and advertising than any human in history”. This might sound a bit harsh given that Sorrell started WPP from scratch in 1985 and today it is worth £9 billion.

Sorrell says Jones, as he did at Havas, “has done truly brilliantly. Like S4, Brandtech is now seeking to disrupt the ad industry through new technologies. According to press reports, he’s built a $1 billion business with an Ebitda of over $200 million and a market value of $4 billion in eight or nine years starting with two people. Extraordinary!”

The Brandtech Group has 7,000 employees, including 2,000 in the UK. It is made up of 11 companies, including Jellyfish, which helps companies track how they are perceived on generative AI platforms, and Mobkoi, which buys mobile advertising space for clients. Then there is Pencil, a platform that has been used to create marketing materials for brands including Baileys, Durex and Persil. Founded in 2018, it is built on OpenAI’s large-language models and was bought by Jones for an undisclosed sum in 2023.

Leena Nair, the chief executive of Chanel, said the Jones and Brandtech are “reinventing marketing by harnessing the power of generative AI”.

Generative AI tools such as Pencil offer clients the prospect of cheaper marketing, with Jones reckoning that big companies will be able to “cut their content creation costs by at least 50 per cent over the next three years”. His hope is that “smarter companies” will use the money they save to invest in more advertising to stay ahead of their competition.

This will provide little comfort for those in the marketing sector who fear that their specific expertise — photography, videography, acting, editing, visual effects and so on — is under threat. “I don’t think that people who are interested in embracing this new world need be concerned,” says Jones.

He recalls that, upon seeing an early form of the photograph in 1840, the French artist Paul Delaroche declared: “From today, painting is dead.” But, says Jones, “it was the birth of impressionism”. He adds: “If you’re a traditional ad agency, it’s probably not great news. But if you’re a creator, it’s amazing news.”

What next for Brandtech? Marcus Anselm, a partner at media acquisitions adviser at JEGI CLARITY, is keeping a close eye on the business. He says that when Jones started out, he faced “some scepticism” from critics who wondered how his company could stand out from the crowd.

“Ten years on, having made some impressive acquisitions, Brandtech has a distinct positioning,” he says, adding that Jones’s investors will now “be looking for a return on their investment”.

So, could a New York stock market listing be on the cards? Jones is keeping his cards close to his chest. “There are great benefits that come with being public,” he says. “But there are also some big constraints that come with it.

“It’s been fantastic to have very long-term, smart shareholders who’ve just allowed me to build a successful business without worrying about the next quarter. And, once you’re public, you’re worrying about the next quarter. So, we’ll see.”

A Glimpse Into 2025

A Glimpse Into 2025

As we embark on 2025, our global team offers their personal insights into the outlook for M&A and Private Equity across our sectors.

A view on North America by Wilma Jordan

The interest rate cuts in the latter half of this year, along with the possibility of more cuts in 2025, should help fuel deal making and work wonders in reducing the buyer/seller valuation gap that created a two-year bottleneck for deals getting done. Thus, we anticipate this discrepancy between what sellers want and buyers are offering will dramatically narrow in 2025.  Companies emerging from 2024 and poised to show strong revenue growth and expanding margins for 2025 will be rewarded with improving EV multiples and an eager pool of financial and strategic buyers, if and when they go to market.

In the past 18 months, we have seen a vastly reduced number of PE exits due to this very subdued buyer’s market.  The mountain of dry powder among private equity firms in the US has reached record levels. Many PE portfolio companies are well past their natural holding periods; these companies either need to be aligned with adjacent players to create synergies, or divested to other companies that can fuel their growth. The combination of dry powder, increased holding periods, and lower interest rates should result in increased PE activity in North America, while well-stocked corporate coffers will also help fuel very healthy buyer competition for prized assets.

Meanwhile, we are well into the first wave of AI anticipation, investment, and realization. Companies and investors alike have come to appreciate that well-designed and purposeful AI tools can be highly effective in complementing and evolving existing business models, rather than posing a near term threat of disintermediation. Business owners are increasingly aware that the only moats they can build around their businesses will result from going deep into a vertical and owning that market.

All these factors will make for a healthier M&A environment in 2025, boosting confidence and sparking a high level of enthusiasm among both buyers and sellers for getting deals done.

The combination of dry powder, increased holding periods, and lower interest rates should result in increased PE activity in North America, while well-stocked corporate coffers will also help fuel very healthy buyer competition for prized assets.

A view on the UK by Richard Vaughan

The UK M&A market showed encouraging signs of recovery in Q4 2024, fostering optimism that this momentum will extend into 2025, setting the stage for a healthier, more dynamic deal environment.

After a difficult 24 months, there is a growing sense of positivity in the UK economy. Consumer confidence is climbing steadily, with surveys in late 2024 showing the highest levels of economic optimism since 2021. With the uncertainty of recent global events beginning to ease, businesses are shifting their focus back to growth, profitability, and strategic positioning, bringing a sense of renewed energy to the corporate landscape.

The Bank of England’s interest rate cuts in the latter half of 2024 – and the potential for further reductions in 2025 – are expected to be a key driver in reviving deal activity. Lower borrowing costs should help narrow the valuation gap that has hampered deal-making over the past two years, encouraging both buyers and sellers to align on price expectations.

Private equity activity in the UK is also showing signs of pick up as we head into 2025. The prolonged period of muted exits and subdued deal flow has created a backlog of PE portfolio companies that are overdue for divestment. With dry powder in the UK and European markets at record levels, alongside improved market conditions, PE funds are well-positioned to capitalize on opportunities in 2025. Simultaneously, corporates with robust balance sheets are expected to fuel healthy competition for high-quality assets, intensifying the demand for attractive opportunities.

We also expect cross border transactions to remain an important driver of activity in 2025 – in 2024 cross border M&A activity involving UK targets increased ~15% vs recent years. Some of that is a function of currency movements but equally a function of economic growth and confidence in key global markets, predominantly the US.

The above is certainly reflected in our own pipeline of business where we have seen a marked pick up in new pitch activity in late Q3/Q4. Many businesses we talk to have been head down for much of 2024 ensuring a return to normalized revenue growth and margin expansion and with that hard work done are now feeling more confident to start strategic conversations.

As we look ahead, we are optimistic on the UK M&A market in 2025 certainly vs 2024 and 2023. Both buyers and sellers are entering the new year with a renewed sense of enthusiasm backed by more confidence in the deal-doing environment.

We also expect cross border transactions to remain an important driver of activity in 2025 – in 2024 cross border M&A activity involving UK targets increased ~15% vs recent years.

A view on UK Private Equity by Marcus Anselm

After a challenging 2023, the UK private equity market showed signs of stabilization in 2024, with new deals projected to close at an estimated £122bn. Political stability in the West, controlled inflation, and declining interest rates have set the stage for renewed activity.

Platform investments accounted for 40% of total deal value in 2024, compared to 45% during 2021’s market peak. The rise in bolt-on acquisitions reflects a strategy of scaling portfolio companies ahead of anticipated exits. Given that many 2021 deals are nearing the typical 3-5 year hold period, exit activity is expected to accelerate in 2025. Supporting this, a Deutsche Numis survey revealed that 84% of private equity firms anticipate increased deal activity, with many planning five to ten transactions in the coming year.

Private equity exits have slowed since 2021, while unrealized assets under management (AUM) have risen to £307bn by 2024. This has heightened pressure from limited partners (LPs) on general partners (GPs) to accelerate distributions, as echoed by an EY survey revealing over 80% of GPs face at least moderate pressure from LPs to boost distributions.

Secondary markets have provided some relief, attracting record investment to create liquidity solutions. Meanwhile, the market remains flush with £139bn in dry powder, ensuring ample capital for deal making in 2025.

The fundraising landscape has been mixed. Mid-market fundraising dipped to £7.9bn in 2023 but rebounded to £10.3bn by September 2024. To sustain investor confidence and attract new capital, private equity firms must deliver strong returns—a factor likely to drive exits and deal activity in 2025.

During the year ahead, we’re expecting to see businesses with diverse leadership teams or a measurable sustainability or social impact story increasingly becoming attractive to private equity investors. A McKinsey report predicts that by 2030, nearly half of UK private equity investments could be classified as sustainable, underscoring the importance of these trends.

Artificial intelligence is reshaping private equity too. Bain research shows 20% of portfolio companies already generate measurable value from AI, with a further 32% of portfolio companies in the development stages. By 2025, deals leveraging AI strategies could deliver extraordinary returns, with 57% of investors anticipating significant value creation within five years. AI is also transforming due diligence, as 70% of investors report walking away from at least one transaction due to AI-related concerns. Currently, AI is considered in 30% of due diligence processes, a figure expected to double by 2027. However, a gap remains between investor expectations and companies’ AI readiness. Our role as advisors is helping to bridge this divide through early preparation with owners and deeply understanding the priorities of the investors.

With favourable market conditions, a surge in bolt-on acquisitions, and mounting pressure to deploy capital and for liquidity, 2025 could well mark a turning point for private equity. For owners, aligning with market trends and leveraging experienced advisors will be key to standing out in an increasingly competitive landscape. Meanwhile, the integration of AI and sustainability themes offers significant opportunities for forward-thinking investors and portfolio companies.

To sustain investor confidence and attract new capital, private equity firms must deliver strong returns—a factor likely to drive exits and deal activity in 2025.

A VIEW ON VENTURE CAPITAL BY SAN DATTA

As we move into 2025, the venture capital (VC) community is looking poised if not for a resurgence, then at least a much better year than the last couple of years.

Going into 2024, hopes had been high that post the operational challenges of 2023, which saw many difficult cost-restructurings across VC portfolio, the improving macro-economic conditions would see an upturn in company performance and valuations. In reality, however, the broader market remained challenging.

At a company level, top-line growth remained muted for many businesses, hovering at 2023 levels, and the cost and capital restructurings had left management teams weary.

From an investor perspective, the market has remained equally difficult. From a fundraising perspective, global ventures funds raised $83bn by Q3 2024, down 13% on the same period in 2023, while from an exit perspective, over 20% of funds said exits were their number one challenge. Unsurprising given a difficult exit environment resulting in exit volumes being down close to 60% against the same period in 2021, and 20% lower against 2022. From an internal perspective, many investors also continued to face difficult repricing discussions and hard conversations with management teams and other shareholders.

Looking into 2025, we feel much more positive about the outlook on both a macro and micro basis. It feels like we will see an increasing bifurcation between the real winners who have shown they can either deliver or return to proper growth, and those which while they have battled through, are left in a more stable but fundamentally low growth state. For the former, they really will have a strong set of options ahead of them.

Large cap enterprise software players’ balance sheets, particularly in North America, remain very well capitalized, and they are keen to buy growth and capability, while many of the sponsor backed software platforms have now got their houses back in order and have returned to the acquisition trail. For the latter, as internal capital structures get resolved and valuation expectations align around buyers and sellers, there will also be increasing exit options for these players.

Looking into 2025, we feel much more positive about the outlook on both a macro and micro basis. It feels like we will see an increasing bifurcation between the real winners who have shown they can either deliver or return to proper growth, and those which while they have battled through, are left in a more stable but fundamentally low growth state.

If you have any queries or would like to have an in depth discussion on this article or the broader market please Contact us.

M&A Activity Accelerates in Digital Marketing Services

M&A Activity Accelerates in Digital Marketing Services

M&A activity in digital marketing services is accelerating, as we anticipated in July, read full article here. Over the past two quarters, deal volume exceeded the quarterly average of 300 transactions over the last 7 years.

Notable deals, such as ECI’s acquisition of Croud, advised by JEGI CLARITY, highlight this trend. Looking ahead, we expect 2024 M&A levels to align with 2023, following the record-breaking momentum of 2021 and 2022.

M&A Activity in Digital Marketing Services since 2010:

*Source: Pitchbook Financial Database

While global M&A saw a decline in 2023-2024, valuations for high-quality digital assets remained resilient. The median EBITDA multiple since 2023 has remained around 13x, aligning with the long-term median of 13.4x, reflecting strong investor confidence in well-positioned, scaled assets.

EV/LTM EBITDA for Select Transactions since 2010:

The growth expected for digital marketing services will be driven by CMOs’ increasing emphasis on data-driven strategies and the shift toward digital engagement across a rapidly evolving landscape. Emerging channels such as CTV, Retail Media, and Social Commerce introduce added complexity, making agency expertise invaluable as brands navigate targeting and personalization. Privacy regulations are further constraining data visibility, increasing brands’ dependence on agencies to leverage advanced targeting solutions effectively. Growth in paid media and programmatic is expected to remain strong, with hyper-growth expected in these new channels.

Investors are increasingly comfortable with GenAI’s impact on the agency model, seeing parallels with the evolution of digital and programmatic advertising, which added complexity to media buying and increased reliance on agency expertise. As with the rise of programmatic, AI enhances agencies’ roles in defining data-driven audience groups and personalizing campaigns. By leveraging AI to optimize media spend across channels, agencies are positioned as crucial partners in navigating a more intricate advertising landscape, using advanced tools to deliver highly tailored, effective omnichannel strategies.

Valuations in digital marketing services are influenced by several key factors:

  • Differentiated Proposition: Agencies with scalable, Tech and AI-driven, or specialized services command higher valuations.
  • Scale: Our data suggests that size matters when it comes to valuation, with larger assets, EBITDA over £12.5m, trading at a median multiple of 16.5x, while smaller assets, EBITDA between £4m and £7.5m, trade at a median of 10.8x.
  • U.S. Revenue Exposure: Higher U.S. revenue draws N. American PE interest (directionally >25% of revenues), creating competitive tension, in turn driving valuations.
  • Strong Financial KPIs: attractive revenue growth, healthy margins, and strong client retention are critical for driving valuation multiples.
  • Evidence of integration in Buy-and-Build: For companies following a buy-and-build strategy, effective and successful integration of acquisitions is a key value driver.

EBITDA range vs EBITDA multiple for Select Transactions:

Looking ahead, we expect M&A activity in digital marketing to increase as economic conditions improve. Private Equity funds will likely continue deploying capital and exits will accelerate considering current hold periods. On the trade side, large agencies, driven by client demand, are likely to continue acquiring digital capabilities that are difficult to build internally.

Over the next 18 months, several PE-backed digital marketing groups across Europe and the US, held for over four years, are likely to come to market, including the likes of Labelium, Jakala, IDHL, Adswerve, Plus Company, and Tinuiti. Additionally, we foresee some consolidation among large PE-backed platforms across Europe, as agencies look to broaden geographic reach and potentially achieve the scale required for public listings.

Navigating Change | Key Insights from IBC

Navigating Change | Key Insights from IBC

This year’s IBC Conference in Amsterdam was themed “Content, Collaboration and Creativity: Navigating a New Media Landscape”, and once again brought together key players from across the global media, entertainment, and associated technology landscape.

IBC is one of the two main events in the sector, alongside the NAB Show in the US. Attendees and exhibitors represented a broad spectrum of major players from both operator/platform owners as well as tech and service providers. Several private equity groups were present, representing their portfolio companies and exploring new investment opportunities across the room.

Jonathan Goodale, Chief Business Development Officer, EMEA, shared his key takeouts from the event.

The industry remains in a state of transition, but sentiment felt more positive than last year’s event, and overall attendance was up on 12 months ago with over 45,000 people in the room.

The overriding theme remains one of ‘doing more with less’ and vendors must navigate this. Yet, despite the challenging environment for vendors and operators over the past 18 months, there is growing optimism that 2025 could usher in a more positive landscape.

There are various developments that could drive excitement and opportunity in 2025. For instance, expect to see and hear more on 5G Broadcast, which once commercially available will drive efficiencies ranging from alleviating pressure on MNOs and allowing linear video and audio broadcasts direct to mobile alongside the clear benefits for emergency broadcast situations.

Equally, expect to hear more about AdTech solutions in the industry as FAST networks and Ad-driven models show resilience as well as scheduled content formats. Associated vendors and providers in these areas are likely to reap benefits as operators and content providers need help building and delivering these solutions. Likewise, the holders of data are kings and we can expect to see increased use of data led content production and delivery decision making.

While AI was of course debated, it did not dominate the conference as it has perhaps done in other sectors. In an industry where there remains a large amount of legacy infrastructure, much of which is still on prem solutions, Cloud migration and strategy remain a huge focal point.

While AI is clearly exciting in terms of what it offers in all areas of the value chain, from content production and services through to delivery, it remains too early to attach tangible return on the investment in a cost-conscious period for the industry. Conversely there are clear and demonstrable efficiencies to be gained from modernizing and streamlining technology stacks and processes.

There was also a recognition that to mitigate risk diversification of partners was needed, as the cost of failing in a live broadcasting environment was too high a price to pay in reputational terms.

There was much talk about how the industry needs to continue to deal with its carbon footprint. From the reliance on energy intensive legacy technology infrastructure to the environmental impact of live event broadcasts, equipment transport, and hardware manufacturing, the conversation around sustainability is gaining urgency. Investors are increasingly asking for mitigation plans and are interested in how technology can help achieve carbon reduction targets.

There are a number of companies in the vendor community backed by Private Equity funds that are expected to be prime for trading in the coming years, which will fuel M&A activity in what is a relatively confined market. Consolidation will be a key theme as key players look to strengthen their positions and gain competitive advantages in this evolving landscape.

With trends like FAST networks, 5G broadcasting, and advancements in IP networking capabilities, new opportunities are emerging in areas such as AdTech, data analytics, and content delivery technologies. As the way we consume content evolves, we can expect new players to become leaders in these fields.

Mergers and acquisitions will play a critical role in shaping solutions for both existing players and investors eager to capitalize on market shifts. Consolidation will likely redefine the industry’s dynamics, enabling greater innovation and integration across the content delivery and technology ecosystem.