La Plus Company du Québec buys the advertising agency Mekanism to expand in the United States

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Plus Company, a Quebec-based marketing holding company, acquired Mekanism, an advertising agency based in San Francisco and New York.

Why is this important: This is the latest consolidation among ad agencies as they seek to bolster their offerings amid increased competition. Plus Company said it plans to make more acquisitions in the United States

Details: The deal aims to expand Plus Company’s U.S. presence, as well as appointing former Accenture Interactive CEO Brian Whipple as chairman of its board.

  • CEO Brett Marchand Told The Wall Street Journal that it plans to pursue further US agency acquisitions focused on creative services, marketing technology, social media, public relations, design and influencer marketing.
  • The companies did not disclose the value of the transaction, which the WSJ said involved cash and equity.

By the numbers: Plus Company will hit about $125 million in annual U.S. revenue after acquiring Mekanism and expects to grow it to at least $300 million within four years, according to WSJ.

The context: Plus Company was established last year after Chinese marketing services company BlueFocus Intelligent Communication Group sold majority stake in its international division to private equity firm CVC Capital Partners and Canadian pension fund CDPQ.

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