After months of rumour and gossip, Publicis has finally signed on the dotted line to acquire Atomic 212°.
The country’s largest independent media agency is understood to have had conversations with others in the space—most notably Accenture Song with its nascent media division. Chairman Barry O’Brien told Mi3: “From time to time we had people knocking on our door.
“This one was probably one of the better processes to go through. They were very buttoned down. Their M&A team is world class.”
The deal includes a four-year earnout for Atomic’s leadership team. They will own equity but Atomic will remain an independent operation inside Publicis Media.
Atomic has been on something of a journey in recent years following some high-profile leadership issues. In the most recent COMvergence data, Atomic won $37 million in net new billings with the $14.5 million-rated Haval and $14 million-rated Bluescope. It’s no secret that Atomic had beaten Publicis’ media agencies Spark Foundry, Starcom and Zenith—themselves not new business laggards—to several accounts in recent times.
Now, the Publicis Groupe lists the three fastest growing holding company media agencies in the country and the fastest growing (formerly) independent agency.
O’Brien said key clients had been told of the ‘ acquisition.
“They could see the upside for them – and for us – they were delighted,” he said.
Publicis Groupe ANZ CEO Mike Rebelo said Atomic would retain its brand and operations.
“The last thing I’m going to do is acquire Australia’s fastest growing media agency and tell them what to do. So it’s got complete empowerment from the group to continue to do what it’s been doing,” he told Mi3.
Rebelo added: “Our media practice in ANZ has been on an incredible trajectory, experiencing growth and momentum across all metrics. The acquisition of Atomic 212° presents a unique opportunity to bring Australia’s most progressive independent media agency into our fold, further strengthening and scaling our media capabilities.
“Atomic 212° is globally recognised for its world-class expertise. For over 15 years, it has consistently delivered growth to clients by leveraging marketing technology and data in media. By adding Atomic 212° to our market-leading roster of agency businesses, we solidify our position as the only group in ANZ capable of offering truly comprehensive end-to-end marketing transformation solutions to our clients.”
Rory Heffernan is Atomic’s CEO, its chief digital officer is James Dixon. It has offices in Sydney, Melbourne, Brisbane, Darwin and Adelaide.
O’Brien said: “From our first meeting, the Publicis Groupe offering and their continuous encouragement to help our business grow was the compelling factor in making this decision. The way the Groupe’s connected platform proposition flows through the organisation, its leadership, its people and its clients is truly powerful. We have grown Atomic 212° into a world-class media operation, but we recognise that the complexity of marketing requires holistic services for our clients. By joining the global best in this regard, we are confident that we can offer our staff and clients an even better experience moving into the future.”
Rory Heffernan, CEO, Atomic 212° added: “We continue to provide our clients with an exceptional suite of products and capabilities, with industry-leading talent delivering across media, research, technology and analytics. We’re incredibly proud to see our capabilities recognised on the global stage, and excited to join Publicis Groupe ANZ at a time when their connected model is delivering such strong results. Our team and clients will be able to enjoy the best of both worlds, as we continue to focus on delivering on our ‘Smarter, Faster, Accountable’ brand promise, while leveraging the Groupe’s broader benefits in growth, creativity and capability.”
The acquisition comes as Publicis Groupe ANZ’s media agencies continue to record strong performances. The agencies consist of Spark Foundry in Australia and New Zealand, Zenith Australia, Starcom Australia and MBM New Zealand.
