incuBeta merges with DQ&A in massive R1.5bn deal

incuBeta, the South African-based digital marketing group, on Thursday announced a merger with the Netherlands-based DQ&A in a deal worth more than R1.5-billion.

Founded in 1995, incuBeta has steadily grown its presence in the digital marketing space and, according to well-placed Memeburn sources, has annual revenues in excess of R500-million. Prior to the announcement of this merger, the group was reportedly looking to go past R1-billion in revenues before launching an initial public offering (IPO).

Specialising in search marketing, the most well known agency property in incuBeta’s portfolio is Clicks2Customers (founded by celebrity entrepreneur Vinny Lingham), although it also owns NMP (UK), NMP South Africa, and Interface.

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According to a statement issued by incuBeta, the merged company has more than 400 full-time staff, with 13 offices worldwide. Both groups have large Cape Town offices, with incuBeta companies operational in the UK, Australia, Singapore, China and Kenya. DQ&A Media Group brands are active in the Netherlands, Germany, Spain, Italy, Switzerland and the USA.

The combined companies specialise in programmatic media, search and web analytics and claim to be capable of implementing DoubleClick ad-tech solutions and running digital marketing campaigns across 100 countries.

“We have created one of the world’s largest, independent, international groups of digital agencies,” says Rick van Boekel, CEO of DQ&A Media Group. “From a geographical, services and products perspective, we are 100% complementary.”

incuBeta CEO Alan Lipschitz meanwhile says that the merger allows the two companies to offer increased levels of innovation to their clients.

“The evolving digital market requires companies that understand the technology, are data leaders, and who can give clients a performance-driven solution that results from an integrated approach to search, display and other digital services. There is now increased depth of talent in our combined teams, with real world innovation and numerous thought leaders in our space.”

Read more: The Memeburn guide to the SA digital agency landscape

While both companies very clearly have an eye on using the merger as a springboard for further global expansion, they also believe it could have a big impact on the South African digital space.

“This is a shot-in-the-arm for the South African digital media industry,” says incuBeta Group Executive, Jonathan Gluckman. “Further proof that we have the skillsets, expertise and track record to not only compete internationally with confidence but, also, win and keep business from the biggest global brands.”

According to incuBeta, the merged entity will be a far more complete digital solutions provider than the companies within it were as independent entities.

As well as allowing the group to offer an increased array of services to its clients, the merger also looks set to birth additional acquisitions, although at this stage it’s unclear which companies are on its radar.