MiQ mulls M&A moves with new PE-backers

Bridgepoint Group has been confirmed as the newest non-public fairness companion of MiQ because the U.Ok.-based advert tech agency evaluates potential consolidation strikes to both bolster its worldwide footprint or broaden its operational experience.

In an announcement, MiQ’s management emphasised that they may stay with the corporate following the deal, which noticed Jefferies Group act as monetary advisor, because it pursued its subsequent progress part.

The precise phrases of the deal weren’t made obtainable however they’re understood to worth MiQ at roughly $900 million.

“Bridgepoint’s confirmed monitor report of modern and scalable investments matches our ambition to maneuver to the subsequent chapter to ship for our individuals and shoppers,” stated Gurman Hundal, MiQ’s cofounder and now its govt chairman.

Talking with Digiday in July, Lee Puri, fellow cofounder of MiQ, defined how the corporate’s months-long seek for new PE-backers can be depending on discovering an outfit that was “aligned with our values.”

Listed on the London Inventory Alternate, Bridgepoint has taken over from ECI Companions in a transfer that noticed the latter PE agency generate an ROI of greater than six occasions its 2017 funding in MiQ, and one which values the advert tech outfit at near $1 billion.

Charles Welham, a London-based director at Bridgepoint, highlighted MiQ’s notable progress fee — its 2021 revenue grew 37.7% to close $465 million producing $45.4 million in revenue — and the way it goals to spice up its growth with its worldwide experience.

Sources with direct information of the pair’s plans for additional growth instructed Digiday that MiQ is now contemplating inorganic progress alternatives with potential strikes for corporations within the areas of contextual promoting and CTV amongst its concerns.

“They [MiQ] have by no means finished it earlier than as they’ve grown properly inorganically, however there’s potential for consolidation as there’s plenty of level options, particularly within the U.S., that’s one space the place they’ll be spending time,” stated one supply who requested anonymity attributable to potential ongoing inquiries.

Different potential strikes embrace doable mergers and acquisitions that will improve MiQ’s worldwide footprint with continental Europe and APAC understood to be potential areas of curiosity, one other supply added.

PE corporations have emerged as the first drivers of M&A in advert tech, a sector of the media market that noticed a glut of public listings in 2021 however has since abated. This slowdown in preliminary public choices and mergers with particular objective acquisition corporations has been attributable to a mixture of macroeconomic elements in addition to uncertainty over points akin to how internet advertising will function amid heightened privateness legal guidelines.

No extra ‘dumb cash’?

Nevertheless, Wayne Blodwell, CEO of consultancy agency TPA Digital described how these considerations haven’t dampened the curiosity of many PE corporations. In actual fact, talking with Digiday, he famous a rise within the variety of inbound inquiries from PE outfits over the last 12 to 18 months.

“Digital promoting is a fast-growing house that’s moderately immature and never closely sure by regulation, and there’s a lot change occurring inside it that it nonetheless presents alternatives,” he stated.

Blodwell added, “The sort of conversations I’ve on this house have a tendency to have a look at rising alternatives and the way a lot room for progress there’s exterior of the massive corporations like Google and The Commerce Desk. Individuals use the time period ‘dumb cash’ however possibly that’s one thing that was the case a very long time in the past from plenty of conversations that I’ve had in latest months, they’re surprisingly properly knowledgeable.”

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