Toronto-based Match Marketing Group has further bolstered its shopper marketing capabilities with the acquisition of Norwalk, CT-based Circle One Marketing. A purchase price was not disclosed.
It is Match’s ninth acquisition in less than two years. The company has effectively doubled in size in that time period, thanks to a series of acquisitions of “specialized” agencies. It currently employs more than 500 people in nine offices, with annual revenues of almost $200 million.
Established in 2001, Circle One (company positioning statement: “Ideas that move people”) boasts expertise in several disciplines including advertising (TV, print, digital, etc.), promotions, interactive, social media, interactive and package design.
“We have long admired Circle One’s work in the market,” said Match CEO Brett Farren in an e-mail interview. “They are well known for their exceptional strategy, creative and execution.
“The business is complementary to our existing service within Match Drive [an integrated marketing group whose services include retail promotion, merchandising and point-of-purchase marketing, packaging and design, and branded content and media] and we felt that the addition of Circle One would build a combined team with unmatched account service, digital, social and creative depth,” he added.
Circle One managing partner Michael Dill said his 65-person company had contemplated several avenues as it sought to grow in order to better serve its clients. Dill said that it had explored everything from a merger to an acquisition to an outright sale.
“We had been exploring all three of those when we met the folks at Match, and talked to them about what they were doing and where some of the synergies fell,” he said. “They had a number of capabilities that were complementary to what we were missing, they had a very good cultural fit, and ultimately we shared the same business philosophy.”
Circle One will eventually be folded into Match’s operations, although Dill didn’t provide a timetable. “We’re progressing, but doing it at a pace where we can make sure we’ve got clients and our teams in mind, so that we are very sure-footed about it,” he said.
Circle One’s client roster is slightly weighted towards consumer packaged goods companies, said Dill, but features a diverse group. Its client roster includes Campbell’s, BIC, Pernod and Scotties.
Dill will continue with Match, overseeing the Circle One operations, although his formal title has not been determined, he said.
Farren said that Match has been actively building out its integrated shopper solution across North America for the past five years, with a heavier emphasis on the U.S. market.
“We had all the key capabilities in the Canadian market, and there were a few key strategic acquisitions required to be able to service the complete U.S. market – those are now in place,” he said. “We believe to be able to most effectively service our clients we need reach, depth of expertise and scale, which we have now achieved.”
The agency had initially allocated $100 million for investment purposes to grow its integrated shopper marketing solution across North America. Farren said the company has also been investing “significantly” in proprietary tools, systems and services. “We will continue to explore synergistic and strategic acquisitions as they emerge,” he said.
Acquisitions in the past year include Boulder, Co.-based Action Marketing, Montreal-based SVM Marketing and Baltimore-based Convergence Marketing.
Farren said he anticipates further consolidation within the shopper marketing space. “The speed, complexity and economics of the market demand that agencies become more efficient and effective,” he said. “It is no longer realistic for brands to work with a growing roster of agencies. They are looking for integration and collaboration across a small group of like-minded partners.”
