2025 M&A Review: Fewer Deals But Bigger Deals

(MENAFN- PRovoke) The past 12 months have seen a significant decline in the volume of merger and acquisition activity in the public relations sector-although a higher percentage of completed deals involved larger agencies.

This public relation tracked close to 70 acquisitions last year, while additional res3arch from llaw firm Davis+Gilbert, which advises on industry M&A, brought the total number of deals we identified to 80-a significant decline from the 99 deals we were able to identify last year

This year's decline comes after two years of increased activity, as the industry rebounded from a difficult year in 2022, but was nevertheless surprisingly robust given the sour mood of agency principals and the overall economic conditions.

Brad Schwartzberg, co-chair of D+G's transactions practice, sats that“while overall PR M&A activity has slowed compared to 2024, the deals we are seeing involve larger, more established sellers.” Almost 40% of 2025 deals involved firms with annual revenue in excess of $10 million, compared to just 27% in 2024 and there was a 7% increase in deals involving sellers with annual revenue of more than $25 million.

“This signals a shift toward consolidation among major players rather than smaller boutique acquisitions,” he adds, and reflects“both strategic and private equity buyers' appetite doe-and focus on-building enhanced market share, deeper capabilities and client portfolios.”

Expanding on this theme, Michael Lasky, chair of the public relations practice at Davis+Gilbert, says:“Integrated and full-service agencies were the most sought-after sellers in 2025, representing 26% of completed deals. Buyers are prioritizing firms that can deliver end-to-end solutions.”

In addition, Lasky said, firms with healthcare and technology industry specialties saw strong demand, reflecting the perception of the long-term growth potential of these sectors.

And, unsurprisingly,“Data and technology are no longer optional-they're essential drivers of value in PR M&A. Both our data and experience demonstrates that buyers are prioritizing agencies with advanced analytics, digital capabilities, integrated technology solutions and proprietary AI products. The reason is simple – these tools deliver measurable impact, and future-proof client strategies for what lies ahead in 2026.”

Among the highlights of the 2025 M&A activity:

1. One Deal to Bind Them All

Well most of them anyway. It's impossible to ignore the long-awaited end of the year deal that saw Omnicom acquire Interpublic, bringing together two of the world's largest advertising holding companies and global public relations agencies Weber Shandick, FleishmanHillard, Ketchum (three of the seven largest agencies in the world) Golin and Porter Novelli, not to mention a host of consumer and healthcare firms like Current, dna communications, and MMC.

The sheer scale of the merger notwithstanding, including it on a list of PR industry mergers was not an easy decision, since PR seems to have been the last thing on he minds of the deal's architects, who seem more concerned with investment in AI, consolidation of media buying capabilities and even real estate cost savings than they are in PR.

Economies of scale are likely to be the focus and most observers don't expect all the brands to survive,

2. Private Equity Musical Chairs

One trend we are obviously going to see more of over the coming years is private equity firms exiting their investments and new partners taking their place, and 2025 saw two prominent examples involbing two fast-growing and acquisitive agencies: Penta and Excellera as well as Chicago=based B2B firm Walker Sands.

In August, Shamrock Capital acquired Penta Group from Falfurrias Management Partners, positioning the stakeholder solutions business-formed in 2022- for accelerated global growth in AI-driven communications and reputation management. Later in the yer, Penta went on to acquire FIO360, a consultancy specializing in data-driven corporate affairs and stakeholder strategy.

In October, Mountaingate acquired Walker Sands f rom Stone-Goff Partners, bringing extensive experience in marketing and communications, having previously partnered with Real Chemistry, Tinuiti, Mars United Commerce and Bounteous.

And in December, ICG- a leading global alternative asset manager- became the new financial partner for Italian corporate and financial communications firm Excellera Advisory Group, succeeding Xenon Private Equity to accelerate its international expansion plan, which had seen Excellera buy the Middle Eastern operations of Instinctif Partners earlier in the year.

Expect more such deals in 2025 as private equity firms seek to realize returns on their recent investments.

3. PE Fuels Growth

Private equity firms accounted for 33 of the 80 deals we tracked in 2026, with several of tge ost familiar names from recent reviews active once again.

FGS, which was acquired last year by KKR, continues to make strategic additions to its service offerings and geographic reach, first acquiring London-based digital-first communications firm Edmonds Elder in a move that bolstered the firm's integrated campaigning and digital strategy capabilities, and then adding Washington-based Tarplin Downs & Young, a healthcare policy and advocacy firm

Public affairs specialist Bully Pulpit International, backed by Broad Sky Partners, also continued its spending spree, with two significant deals: first, it added Agado Communications to expand its sports communications practice. And then it acquired LA-based impact agency Propper Daley, expanding its cultural influence expertise and US footprint into two new markets.

Paritee, backed by Norwegian private equity firm Explore Equity, was even more active: in November it acquired RPP Group, a public affairs consultancy headquartered in Brussels, to extend its expertise across regulated and policy-driven sectors; in December it added Kruse Larsen, a Norwegian advisory firm specialized in strategic communication, public and governmental affairs, and crisis management, and UK-based strategic intelligence consultancy Truth Consulting.

And Real Chemistry, a fixture on these lists in recent years, made two new purchases, expanding its digital and intelligence service portfolio: Greater Than One, a healthcare-focused media and technology agency, expanding its capabilities in precision media, omnichannel strategy and performance analytics; and Spring & Bond, a digital media agency specializing in healthcare.

4. Independent PR Firms Expand Capabilities

The research PRovoke Media has conducted in partnership with Davis+Gilbert in recent years has shown that PR agency principals would prefer to be acquired by other ind3pendnt PR agencies, and those independent firms were active buyers in 2025, with 32 deals, most of them expanding either specific services or geographic reach.

Some familiar faces were active: Finn Partners expanded its presence in the Asia-Pacific region with the acquisition of Rice Communications, a 60-person Singapore-based consultancy, with expertise in travel, technology, corporate and consumer public relations; Ruder Finn also added depth in the region, buying Southeast Asia's Era Communications with operations in Thailand, Vietnam, Cambodia, Laos, and Myanma, and also added Big Sky Communications, a San Jose-based customer marketing agency.

Mike Worldwide, meanwhile, expanded its expertise in in sports, entertainment, food, beverage, hospitality, and consumer lifestyle sectors when it completed the acquisition of longtime affiliate Berk Communications. And Florida's rbb Communications acquired Upraise Marketing + Public Relations, a San Francisco-based agency focused on B2B technology and financial services.

On the other side of the Atlantic, technology-focused firms The Hoffman Agency and Team Lewis were active. The former trebled the size of its business in the UK with the acquisition of respected London-based B2B tech PR and marketing specialist CCGroup, while the latter acquired the UK division of Instinctif, a move i to develop its proposition into capital markets, public policy, global corporate communications and sustainability reporting.

Also of note, reputation and communications consultancy Headland acquired digital, brand and content firm Bladonmore, a stakeholder relations specialist to expand its client offer and international footprint. And Brussels-based Whyte Corporate Affairs acquired Dutch consultancy Public Matters to consolidate its position as the leading corporate affairs spcialist in the Benelux markets.

5. Holding Companies (Mostly) Stay on the Sidelines

While private equity firms are apparently convinced that there's value to e unlocked in the public relations sector, the big holding companies whp once hoarded PR agencies appear to regard our business with skepticism.

Or at least the Anglo-Saxon ones do. Unless you count the Omnicom-Interpublic merger to which PR was barely a footnote, the big US and UK players did not make a single deal in 2025, akthough all of them were dealing with crises in one form or another/

Stagwell was the biggest such player of note to dip its toe in the waters, buying Asian network ADK and merging it with its Assembly operation, although Public Policy Holding Company, listed on London's Alternative Investment Market, entered a binding agreement to acquire TrailRunner International, adding more than 80 full time professionals across eight global offices.

But the French were busy. Havas acquired a majority stake in German corporate affairs and financial communications firm Gauly Advisors and bought Spanish sports marketing agency CA Sports. And Publicis Groupe was even more active, making six acquisitions across digital and social media, healthcare and sports marketing that could at least be described as PR-adjacent: South East Asia's preeminent influencer agency Hepmil Media Group, end-to-end influencer marketing platform Captiv8, and Australian media agency, Atomic 212° among them,

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