Equistone-backed PIA bolts-on UDG

PIA was initially formed from the integration of four German digital marketing businesses that would continue to operate individually but would offer a range of services from one source. Equistone's initial investment was intended to support development through organic and acquisitive growth, particularly in German-speaking Europe.

The acquisition of UDG is the fifth bolt-on after the company acquired digital consulting group Dymatrix and online marketing agency SoQuero in 2014, and, more recently, digital product design company Appico and online marketing service TAB in 2018.

The transaction is expected to be completed by the end of February 2019 and is subject to approval by competition authorities.

On EQT's purchase of UDG in 2011, Unquote reported that the expected sales of the company were around €89m. The company's turnover is now approximately €40m after EQT divested UDG's media and performance-marketing activities to NYSE-listed agency network Omnicom Group in August 2018.

Previous funding
Equistone purchased a majority stake in the newco PIA in 2014 using funds from Equistone Partners Europe Fund IV. The fund closed on €1.5bn and was intended for investments of between €50-300m. Unquote estimates the fund to be 95% deployed.

In 2013, the four companies' combined turnover reached €140m.

In May 2011, EQT backed the merger of nine German digital communication and marketing agencies to form UDG, via its EQT Expansion Capital II. The enterprise value of the new company was approximately €97m.

EQT Expansion Capital II closed in 2007 on €474m. The fund was reported to have a 10 year-lifespan.

Company
Founded after EQT backed the merger of nine separate digital agencies, UDG now employs 400 people at five sites across Germany. The company offers services including strategic marketing consultancy, digital design, and implementation. UDG counts Porsche, Beiersdorf, Volkswagen, Stihl, KSB and Puma as clients.

People
Equistone Partners – Marc Arens (partner); Leander Heyken (partner).
Performance Interactive Alliance – Christian Tiedemann (CEO).
United Digital Group – Markus Lucht, Mathias Reinhardt, Ulrich Bartholmoes (managing partners).

Advisers
Equity – KPMG (financial due diligence, tax); Renzenbrink & Partner (legal, M&A); Ashurst (legal, financial due diligence); GCA Altium (financial due diligence).

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