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MarTech Barometer – Q3 2018 Market Review

By Rosemary Fallowfield 11 Oct 2018

Welcome to the Q3 2018 edition of the MarTech Barometer – Results International’s quarterly review of the global marketing technology sector.

 

Highlights this quarter include:

  • Martech continues to soar, witnessing the highest valuations on our records with Results International’s Martech Index trading at 8.8x revenue, disclosed global M&A deal value of over $9bn and significant fundraising.
  • After its $1.7bn acquisition of Magento earlier this year, Adobe made its largest acquisition in September, acquiring marketing automation firm Marketo for $4.8bn from private-equity house Vista Equity Partners, implying a ~2.6x uplift in value following Vista’s take-private in 2016.

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  • Episerver was acquired by US growth fund Insight Venture Partners for $1.2bn, demonstrating the continued confidence in the growth prospects for martech from private-equity.
  • AppLovin announced a $400m funding round led by KKR in July, implying a $2bn valuation, after Orient Hontai Capital abandoned its proposed $1.4bn acquisition due to US regulators cracking down on Chinese investment into American tech companies.
  • Our Adtech Index’s strong performance was driven by The TradeDesk which continued to gain market share over other DSPs and achieve expectational growth. While it continues to consolidate the independent programmatic market, eventually The TradeDesk will be faced with the challenge of beating the major platforms such as Google, Facebook and Amazon.
  • Deloitte’s acquisition of Magnetic Media’s AI platform represents one of the first consultancies to make a direct move into media execution capability.
  • Adtech has seen notable C-suite shifts in two of the challenger platforms built via acquisition, Verizon and AT&T. Tim Armstrong of Oath (Verizon) resigned and Brian O’Kelley of Appnexus (AT&T) moved to an advisory role, with each telco owner now charged with unlocking the investment.

The martech and adtech sectors remain active and the outlook is exciting. As such, now is a good time to be contemplating fundraising, exit or growth through acquisition in the martech or adtech space – if you are, please do get in touch.

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Rosemary Fallowfield

Associate

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