In December 2025, the events and agency sector saw an unusual concentration of mergers and acquisitions. Five major deals were announced in quick succession: Unbridled merged with OrangeDoor; Spiro acquired 2Heads; Havas Play acquired Bearded Kitten; Encore acquired FIRST and ITA Group acquired C2 Events. The activity followed a significant October announcement, when Identity and Smyle revealed plans to consolidate under a single unified brand: Identity Global.
The volume and pace of these moves raise a broader question: why has the agency landscape experienced such a sharp surge in consolidation, and what does it mean for the future of agency services?
To explore this trend, we spoke with Stan Bullis, president of Unbridled, and Michael Gietzen, group chief executive officer at Identity, to understand what is driving this wave of mergers, the strategy behind the deals, and whether further activity is likely as the industry moves into 2026.
What’s driving the surge?
Consolidation across the agency landscape is accelerating, driven less by aggressive growth ambitions and more by economic pressure and shifting client expectations. Rising operating costs, squeezed margins, and limited scope to increase fees are forcing many agencies to reassess their long-term sustainability.
Bullis identifies two primary drivers: economic realities and the demand for creativity delivered at speed. He explains: “From an economic perspective, many boutique agencies are seeking exit strategies in a climate where raising fees is difficult. Inflationary job markets make it more expensive to operate, yet there’s limited opportunity to pass those costs on to clients. As a result, acquisition becomes one of the more viable ways to achieve economies of scale.”
At the same time, client demands are evolving. Bullis says: “Clients want more innovative ideas delivered faster which makes smaller, highly creative boutiques attractive acquisition targets.”
However, he cautions that consolidation only succeeds when it is pursued for the right reasons. He says: “Beyond economies of scale, consolidation can bring access to talent, innovation, and new markets. But those benefits are only realised when culture and values align. Without that alignment, scale alone can dilute creativity and erode client trust.”
The Unbridled–OrangeDoor merger, Bullis explains, is an example of that alignment in practice. He says: “Our merger with OrangeDoor was fundamentally about cultural alignment and shared vision. Many mergers focus on acquiring a book of business or a specific capability. What makes this one different is that it isn’t just about buying it’s about building something larger, more meaningful, and more sustainable.”
He adds: “The ethos behind the merger is twofold: optimism about the future of live events, and a belief that culture must sit at the heart of growth. That’s what makes this deal distinctive, particularly against the backdrop of a broader glut of mergers in the sector.”
The wider economic context reinforces this view. Gietzen notes that inflation, wage pressure, and rising production costs have fundamentally reshaped agency economics. “In real terms, operating costs across events and experiential have increased by around 15–25% since 2021, depending on geography and supply chain exposure. That inevitably puts pressure on margins and pushes some businesses to look to scale as a form of protection.”
He adds that globally, inflation has pushed average delivery costs up by around 20% and that in the UK increases in employer national insurance, wage expectations and compliance costs have compounded that pressure. He says: “At the same time clients are asking for more: more strategic things, more accountability, and more consistency across markets. That creates a tension. Clients quite rightly want exceptional experiences, but they also want efficiency, value and resilience. Agencies have to absorb cost pressures while continuing to invest in people, technology and innovation.”
In a recent Linkedin article, Gietzen outlines that these rising costs are not temporary. Things such as sanctions, energy price volatitly and Brexit related customs frictions means that things such as AV, staging freight and catering can all cost more to source. These financial pressures are not easing.
These perspectives point to an industry where consolidation is no longer optional for some agencies, but a strategic response to a more demanding, cost-intensive, and fast-moving market.
Big fish little fish, big fish big fish
Most of the recent deals follow a familiar pattern: larger agencies acquiring or merging with smaller, more specialised businesses. Bullis says: “Smaller agencies are nimble, highly creative, and able to move quickly. They tend to maintain closer, more personal relationships with buyers, which makes them especially appealing in a market where client retention and originality are at a premium. Their agility enables them to deliver fresh ideas fast, and that responsiveness combined with a deep understanding of local markets and cultural nuance is exactly what clients are demanding today.”
For smaller agencies, acquisition can also provide a degree of stability at a time when operating costs are rising and margins remain under sustained pressure. Access to greater financial resources, shared infrastructure, and broader client networks can reduce operational risk, while allowing founders and teams to focus more on creative delivery rather than overheads and business survival.
However, not all recent consolidation fits this traditional buyer seller model. The Identity–Smyle deal stands apart as a merger between two agencies of near identical size, combining to deliver greater creative capability and value rather than scale alone.
Michael Gietzen, group chief executive officer at Identity, explains: “Most consolidation follows a familiar pattern: scale buying specialism, or balance sheets absorbing capability. That can make sense in certain circumstances. But this wasn’t that. Identity and Smyle were near-identical in size, turnover and ambition. Neither business was distressed, and neither was looking to be ‘rescued’. What we recognised was that independently we were strong, but together we could be meaningfully better.”
He adds: “This was a merger of equals driven by shared belief, not financial necessity. The aim wasn’t to bolt on capability, but to align two cultures that already valued creativity, rigour and people in the same way. That’s a far harder thing to do but when it works, it’s also far more powerful.”
He continues: “The unification of Identity and Smyle isn’t a defensive move. It’s an offensive one. We are entering the golden age of experience. As digital channels fragment and performance marketing becomes more commoditised, live and experiential work is carrying more strategic weight than ever before. That demands deeper talent, broader capability and genuine global delivery, not just in footprint but in thinking.”
He concluded: “This wasn’t about survival; it was about building an agency designed for the next decade of complexity and opportunity.“Experience Changes Everything” isn’t a slogan for us. It’s a commercial reality. Experience is now one of the most powerful levers brands and governments have to create clarity, trust and impact in a fast-changing world.
Consolidation is not without risks
Whilst consolidation has benefits including broader skillsets and financial resilience it is not without risk. As agencies combine, there is a danger that distinctive cultures, specialist expertise and agility become diluted. While larger, multi-market agencies can offer resilience and breadth, they can also struggle to maintain the responsiveness and creative edge that smaller independents can offer.
Will consolidation continue?
So, looking ahead to 2026, should we expect a continued surge in M&A activity?
With operating costs continuing to rise and uncertainty around AI and other disruptive forces reshaping agency models, consolidation is likely to remain an attractive and in many cases necessary route to stability and scale. Bullis says: “Consolidation will continue. Rising costs and limited availability to increase fees means M&A activity is a way to consolidate and strengthen P&Ls. Add to that the uncertainty created by AI and other disruptive forces, and it’s understandable that for some smaller agencies, especially those led by entrepreneurs who may be considering their succession planning, acquisition can feel like the natural exit strategy.”
Ultimately, consolidation is likely to remain a prominent feature of the agency landscape, but its impact will be determined not by the number of deals completed, but by how effectively agencies integrate, retain talent and continue to meet increasingly complex client expectations.