Orlando digital marketing agency Zillas has some big changes lined up, now that it is part of a larger organization.
Zillas — which was acquired in March by Miami-based strategic communications and marketing company Avenue Z — plans to double its current Orlando staff by early 2024, according to Avenue Z CEO Jeffrey Herzog. Additionally, the company plans to move into a “large, state-of-the-art facility in downtown Orlando,” though Herzog declined to share further details.
Why this matters: Mergers and acquisitions can offer signals of an industry's health, as well as indicate the potential for new investment. Companies that acquire other firms likely are performing well, while those being acquired likely are seeking resources to grow faster.
Herzog in a Sept. 6 news release about the acquisition praised Zillas founder Johnny Hughes and his Orlando team for their early adoption of artificial intelligence (AI) tools and the technology's application to search engine optimization.
He also called the transaction more than "just an acquisition, but a core pillar of our business," he told Orlando Business Journal.
"We can build around it. The Orlando office will be home to Avenue Z’s design and development teams. There are currently over a dozen full-time positions open.”
Hughes, who now will serve as chief digital officer, said Zillas will keep doing what it does best: developing and creating memorable content that inspires audiences and connects brands through various channels. Being acquired will allow it to serve more clients, he said.
“We’ve been a B2B [business-to-business] marketing company, like health care, manufacturing and professional services. Now, we’ll be able to have a 50/50 split with B2B and other clients like direct-to-consumer and e-commerce.”
Meanwhile, the Orlando deal was Avenue Z's third acquisition this year. The company has about 125 employees nationwide, with offices in Orlando, Boston, New York City, Los Angeles and London. The company is funded by Herzog and private equity fund Baleon Capital, which focuses on B2B tech-enabled services.
Global mergers-and-acquisitions activity is expected to rise in 2023's second half, driven by investors and executives who want to balance the "short-term risks with their long-term business transformation strategies," when it comes to deals, according to PricewaterhouseCoopers' 2023 Global M&A Industry Trends Outlook, which was released in February.
A mid-year update from the same group said with the deceleration of inflation and aversion of the U.S. debt ceiling crisis, a more buoyant M&A market would emerge, setting the stage for mid-market deals as companies pursue their strategic growth agendas.
"The M&A market is more resilient than the headline numbers might suggest. It’s a buyer’s market out there now, especially for cash-rich corporate acquirers and middle-market deals. So it’s essential for sellers to work harder to prepare for upcoming sales — or risk losing out," Brian Levy, PwC US global deals industries leader, said in a prepared statement.
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