Service Sector Paces M&A Activity

Marketing service transactions accounted for slightly more than half of all first-quarter direct marketing mergers and acquisitions, according to New York-based investment banking firm Petsky Prunier. The company tallied 56 transactions involving marketing services firms during the first three months of the year, accounting for 52% of total direct marketing mergers and acquisitions.

Petsky Prunier estimated total industry transaction volume at $6.6 billion. Breaking down the volume by category, the marketing services sector accounted for $3.2 billion, while the marketing technology sector accounted for $2.2 billion, and marketing firms $1.2 billion.

The largest transactions in the quarter included Acxiom's acquisition of Digital Impact, the acquisition of AskJeeves by InterActiveCorp., and Transcontinental Direct's acquisition of Jetson Direct Mail Services.