Quebec's Plus Company buys ad agency Mekanism to grow in U.S.
Plus Company, a Quebec-based marketing holding company, has acquired Mekanism, an advertising agency based in San Francisco and New York.
Why it matters: This is the latest consolidation among ad agencies as they seek to strengthen their offerings amid increased competition. Plus Company said it expects to make more acquisitions in the U.S.
Details: The deal is intended to expand Plus Company's U.S. presence, along with the appointment of former Accenture Interactive CEO Brian Whipple to chairman of its board.
- CEO Brett Marchand told the Wall Street Journal that he plans to pursue more acquisitions of U.S. agencies focused on creative services, marketing technology, social media, public relations, design and influence marketing.
- The companies did not disclose the deal value, which WSJ reported involved cash and equity.
By the numbers: Plus Company will reach about $125 million in annual U.S. revenue following the Mekanism acquisition and plans to grow that to at least $300 million within four years, per WSJ.
Context: Plus Company was formed last year after China-based marketing services company BlueFocus Intelligent Communication Group sold a majority stake in its international division to private equity firm CVC Capital Partners and Canadian pension fund CDPQ.
- Mekanism was founded in 2003. Its clients have included Peloton (remember the Peloton wife?), Jose Cuervo and Joe Biden's 2020 presidential campaign.