Group defies trend, leads own acquisition to boost growth

The landscape of acquisitions in the digital marketing world often paints a picture of larger companies targeting and absorbing smaller agencies. However, Create Group, a prominent agency based in Dubai, took a different route when it recently secured an acquisition deal with Code and Theory, a part of the Stagwell network. Unlike many agencies that are acquired due to market forces or as a response to external pressure, Create Group made a bold move to proactively seek out its own acquisition as a strategic step towards its growth and future development.

Create Group’s journey began 15 years ago, with founder Tom Otton turning a job loss during the global financial crisis into an opportunity. Starting with just a single desk, Otton ventured into corporate marketing services and gradually expanded the agency’s presence across Dubai, Egypt, and Saudi Arabia. The agency’s growth trajectory was steady, and during the Covid-19 pandemic, it witnessed significant expansion by adding 100 employees in just over a year, effectively doubling both revenue and EBITDA. However, this rapid growth posed challenges as the business infrastructure wasn’t fully equipped to handle such swift scaling, nearly causing the company to collapse.

As the agency evolved over time from a digital delivery focus to a strategic digital communications approach, they extended their services to include content production, digital product development, and social delivery, all supported by data and analytics. With a client base that includes large ministries, government entities, global brands, and nation-building organizations, Create Group emphasizes storytelling at the core of its offerings. The decision to actively seek acquisition was a strategic one, as the agency identified the need to broaden its global reach to better serve its expanding clientele.

Unlike traditional acquisition processes where buyers typically lead the strategy, Create Group’s seller-initiated approach stood out as a deliberate move towards strategic expansion. The agency realized the importance of providing its clients with a global perspective and access to top talent worldwide, prompting them to seek a partner that could offer the required technical capabilities and international reach. In Stagwell’s Code and Theory, Create Group found a perfect match that aligned with its strategic goals and vision for growth. The technical expertise and global reach of Code and Theory complemented Create Group’s regional expertise and cultural understanding, making it a well-suited partnership.

Since the acquisition, Create Group has already started collaborating on projects that were previously out of reach, leveraging Code and Theory’s diverse team of engineers and creators. This strategic move to position itself for accelerated growth through acquisition showcases Create Group’s forward-thinking approach and commitment to meeting the evolving needs of its clients while staying true to its regional roots.