Havas acquires sports marketing agency in first deal following stock exchange debut

According to Jorge Irizar, CEO of Havas Media Network Spain and global COO of Havas Media Network, it’s the first of 10 acquisitions the media group is targeting over the course of this year, and part of a multi-year process to broaden its business model.

“We’re looking for opportunity. We’re looking for talent. We want to accelerate this diversification. We want clients, expertise, talent, new ways of working, fresh air in our organization,” he said.

Havas didn’t disclose the full financial terms of the deal, but Irizar said the cash-only agreement will result in Havas assuming full control of CA Sports after six years.

Sport and culture focus

That Havas wants to sharpen its appeal to advertisers amid rising investments in sports advertising and sponsorship deals won’t come as a surprise. It’s safe to say sports content remains a last bastion of live TV viewership, making it valuable for advertisers.

Brands often use sponsorships as a means to reach large audiences without having to spend large amounts on live TV. Don McGuire, CMO of Qualcomm and its Snapdragon brand, told Digiday that its five-year sponsorship deal with soccer team Manchester United — reportedly valued at $375 million — provided value for money, compared with other forms of brand advertising.

“I would have to increase my upper-funnel advertising budget by four times to deliver the same results,” he said.

Per PwC estimates, the global sports sponsorship market is estimated to reach $109.1 billion by 2030; the 10-year Formula One sponsorship inked by LVMH last year, for example, was valued at over $100 million per year. So, expertise in culture and entertainment spaces, sports included, is expected to be an area that agency groups target for M&A activity this year.

Andrew Day, CEO of M&A advisory Capital A, said that “strength in the market” among independent agencies had already begun drawing acquisitive groups. In September and November, Capital A advised spatial computing firm Skyview Innovations in deals to acquire two CX companies, U.K. sports specialist OMM and U.S.-based Hovercraft, respectively.

Havas Media Network’s M&A strategy

CA Sports — which counts Hyundai, Coca-Cola and Konami among its clients — would grant Havas Media Network an expanded foothold in the Spanish market. Home to the La Liga soccer tournament and teams such as Barcelona and Real Madrid, it’s one of global sports’ major hubs. The company offers services for brand consulting and the management of sponsorship deals, alongside creative and experiential production.

But the acquisition is part of a larger shift at Havas, according to Irizar. Pressure from client procurement teams to cut costs in an increasingly “commoditized” media market had lowered the ceiling for growth. Irizar said.

In response, the COO said Havas Media Network intends to diversify its client offering over a four-year period. The ultimate aim is to derive half its revenue from activities unrelated to media buying and planning.

“[The] goal is, in the next three [to] four years, to have half of the revenue outside core business, outside pure media,” said Irizar. “For that, we need to grow organically — new talent, new clients, new expertise — and also to go to market and buy some companies.”

Havas completed 10 deals in 2024, including Wilderness, a U.K. social agency added to the same Play division as CA Sports. Following its listing on the stock market, Havas aims to add between $41 million and $52 million (€40 million to €50 million) in net revenue through acquisitions each year.

Matthew Lacey, partner at M&A advisory firm Waypoint Partners, said “fast growth emerging specialist” agencies providing “capability builds” could offer another means of meeting that target.

Irizar said Havas plans to execute 10 agency acquisitions before the year is out, focusing on companies in the U.S., U.A.E., India, France, Belgium and Spain. Companies offering services and expertise in data analytics, retail, AI and entertainment are high on its hit list.

It won’t be the only agency group with its hat in the ring. Industry experts previously told Digiday that they expected to see agency M&A activity increase this year, as the ad world’s agency players looked for means to counter the huge scale of a combined Omnicom and Interpublic. The holding companies are due to complete a merger later in 2025.

Irizar said the company expected to announce the acquisition of another Spanish company before the end of Q1, but declined to provide further details.