Direct Marketing Still Going Strong After Record-Breaking Year, Reports Petsky Prunier
Thursday, 18 May 2006
Last year was a banner year for deal-making in the marketing industry, and the first quarter of 2006 shows continued strength in mergers and acquisitions activity, according to Petsky Prunier LLC. So far this year, 128 transactions were completed by businesses in marketing services, marketing technology, and multichannel marketing, with an aggregate deal value of $9.1 billion, an increase of 14 percent from 2005.
Activity in multichannel marketing (catalog, e-commerce and other integrated marketing companies) lead the way in the first quarter, conducting 28 deals with a total value of $3.8 billion, reports PetskyPrunier. Although the number of transactions was up by only two from last year, the aggregate value increased by $2.2 billion, or 238 percent over the first quarter of 2005, the report said.
Some highlights of the report's findings:
Marketing Service
In Q1 2006, transactions relating to marketing services made up 53 percent of total mergers and acquisitions in the marketing industry. The total number of marketing services transactions rose 5 percent from Q1 2005, but the aggregate transaction value decreased to $3.2 billion, or approximately 17 percent, the Petsky Prunier report states
Marketing Technology
In the area of marketing technology, transactions were split evenly with 17 investments, and 17 acquisitions, making up 27 percent of direct marketing’s M&A activity. Aggregate transaction value decreased 16 percent from Q1 of 2005.
Multichannel Marketers
Mutlichannel marketing transactions totaled 26 in the first quarter of 2006, making up 20% of M&A for the marketing industry. A growth of approximately 143 percent was noted for aggregate transaction values compared with the same period in 2005.
For the complete Petsky Prunier report, go to http://maildogmanager.com/page.html?p=0000015Fu8vnwx4E4uOGyc+n7gmYNP8ZM=