The epic impact of global-local acquisitions and mergers

By Leigh Andrews

16 Mar 2015

Two weeks ago, the announcement of yet another SA firm being acquired by a global group enlivened the local communication industry.

Here's a video of the announcement, in case you missed it at the time:

Known as SA's leading strategic communications agency, Epic was named best agency in Africa at the Superior Achievement in Branding, Reputation and Engagement or SABRE Awards ceremony in London in May 2014, so it's a valid claim that they're an industry leader. That's partly why Publicis wanted more.

Publicis loves local, extends African footprint

This Publicis Groupe clearly loves South African firms, as this acquisition follows those of BrandsRock (Saatchi & Saatchi), Liquorice (DigitasLBi), MACHINE (Publicis Worldwide), Prima Integrated Marketing (Publicis Worldwide), OwenKessel (Publicis Worldwide) and Lighthouse Digital (Starcom MediaVest Group) in South Africa and sub-Saharan Africa in 2014, showing Publicis Groupe's continued expansion on the continent. And Publicis Groupe isn't the only one snapping up all things local. So much so that BizTrends curator Louise Marsland listed 'Mergers and Acquisitions' as one of the top trends for 2015.

© Choneschones – 123RF.com

But what does this new 'global parenting' or partnering trend mean for the SA firm that's acquired? I pinned down Elian Wiener, founder and CEO of Epic Communications, to tell us more about what went on behind the scenes of the acquisition, as well as the impact on the SA communications industry as a whole...

1. This acquisition was an industry-shaking move - what precipitated it?

Wiener: The speed at which the communications industry is evolving is staggering. Clients are looking for their agencies to provide a more extensive range of skills, knowledge and global best practice. This, coupled with the fact that many clients are looking for cross-border solutions, means that having a leading global partner was the logical decision for us.

Besides sharing a common vision with MSLGROUP around the power of storytelling and the importance of fully integrated communications solutions across multiple channels, I was attracted by the entrepreneurial spirit that exists within the group. Many of their top executives were former agency owners whose businesses were acquired by MSLGROUP over the last few years, so they understand and encourage the preservation of the culture and mindset that made Epic Communications so successful.

2. Explain how you reached the new name, Epic MSLGROUP...

The new branding...

Wiener: One of the great things about MSLGROUP is that they really want the agencies they acquire to retain some of their culture and heritage. In Epic Communications, we have also built strong brand equity, so we decided to keep the "Epic" in Epic MSLGROUP.

3. Makes sense. What's the reaction been like, since the acquisition announcement?

Wiener: Everyone has been incredibly positive about the transaction. MSLGROUP is an extremely well-respected agency globally and was named the 2013 EMEA Consultancy of the Year by the Holmes Report.

Our clients are really excited about the added value they will derive as a result of this acquisition, which includes MSLGROUP tools and proprietary processes, global best practices and insights, and some of the best minds in the communications industry. Our staff have also welcomed the announcement and the learning and career opportunities that come with being part of a global group.

4. Sounds like a good move, then. Moving a little broader - what does the recent string of acquisitions mean for the local communications industry?

Wiener: Africa is truly the last frontier when it comes to growth opportunities. As more and more companies have recognised this and entered the African marketplace, agencies have realised the importance of following clients into the continent. Until recently, many of the top 15 or 20 PR agencies in South Africa have been independents, but with the global groups moving in, it's going to be very difficult for them to compete for talent and multi-national clients. From a delivery perspective, we are already seeing the benefits of gaining access to global best practice and thinking; it's enhancing the quality of work we produce.

5. What does this say about the perceived quality of SA's creative work?

Wiener: Many of the global agencies are choosing to use South Africa as their base into the rest of Africa, which says a lot about the quality of skills and talent we have in this country.

6. Back to Africa then: Talk us through the strategic importance of Africa to international marketing companies as part of their global strategies.

Wiener: With Africa an increasingly important market for multi-national companies, it is critical that marketing agencies are able to offer a pan-African solution in order to win global accounts and mandates.

7. How will the entry of MSLGROUP impact the South African communications environment?

Wiener: The additional capabilities that MSLGROUP adds to our business means we will be able to compete more aggressively with other large agencies for global accounts. It also adds additional skills and best practices to our offering, which is great for clients and will hopefully force competitors to up their games too.

8. How will the industry adapt as global groups continue to enter the marketplace?

Wiener: There will always be a place for well-run independent agencies. However, it's going to get increasingly difficult to compete with the global brands for top talent, which is extremely scarce in South Africa at the moment.

9. Let's go back in time - how has the communications industry changed since you started Epic Communications?

Elian Wiener, founder and CEO of Epic Communications

Wiener: In many ways, it's been nothing short of dramatic. The shift in the way people consume information and make purchasing decisions means that traditional PR agencies are now required to deliver integrated communications strategies using multiple channels, especially in the digital and social media space. At Epic MSLGROUP, we have taken the route of completely integrating our traditional PR and digital teams, which enables us to look at strategies from the top-down and deliver effective and integrated solutions.

What has not changed, however, is the importance of great content. While the delivery channels and form of the content are constantly evolving, people still want a great story. With all the options available to us now, it's a very exciting time to be in the communications industry.

10. Lastly, tell us your outlook for the industry, based on trends and the evolution of PR in SA.

Wiener: Traditional PR agencies that focus purely on media relations are a thing of the past. Many of our strategies now incorporate digital, internal, influencer outreach and activation elements. This provides us with so much more opportunity to be creative. It also allows us to offer a broader range of services to clients, which means we can build much deeper relationships with them.

Seems the communications industry is in for an interesting time. For more from Epic MSLGROUP, visit their press office, or follow them on Twitter.