The acquisition gives MSQ a stronger media offering to compete with the large holding companies, said Aaron Lang, U.S. president of MSQ Partners.
Terms of the deal were not disclosed.
London-based MSQ owns agencies including Big Spaceship, Arke, Elmwood, 26PMX, and Forge. Lang said that MSQ has looked to acquire creative, digital experience, and media agencies.
While MSQ offers media services, the U.S. footprint up until now has been “sub-scale” and specific to industries like financial services and professional associations, according to Lang.
“The thing that was really difficult was finding someone who was the right size with the with all of the criteria,” he said. “There’s either the really large scale of the holding companies or there’s parts and pieces—there weren’t a lot of the mid-size.”
Fourteen-year-old January Digital is a media and strategy agency founded by CEO Vic Drabicky. The agency works with brands including Supergoop, Steve Madden, and Amika. January Digital primarily works with retail clients but has diversified its portfolio over the years. Drabicky estimated that 70% of the agency’s clients are retail, down from nearly all clients five years ago.
Drabicky had been looking for a strategic buyer for more than a year, and landed on MSQ due its financial, business, and cultural fit.
“When you’re an independent, you can only develop at such a certain rate,” he said. “For us, it was about finding a partner who could fill any of the gaps in our services and do it in a way that allowed us to compete with those bigger holding companies.”
January Digital’s leadership team will join MSQ and retain its name as part of the acquisition. MSQ employs 2,000 people globally, with 500 in the U.S.
