Digital media consultancy Zapp Communications has acquired Delco Design Group, in a move that reflects the current consolidation trend across the design industry. The deal was sealed last week.
Zapp managing director Zak Hydari believes the acquisition of Delco, which is comprised of Delco Creative Services and DelcoNet, is essential if Zapp is to continue to compete effectively in the digital media sector.
“The market is divided with the big boys at the top. Smaller players must unite through mergers or acquisitions to compete,” he says.
Hydari says that a merger is not being considered for the moment, but he won’t rule it out. Further acquisitions will be sought in the next six months.
Zapp has agreed to pay up to £1.2m for Delco depending on business performance. In the short term Delco will remain at its Rochester base, and there will be no redundancies. There are no immediate plans to rebrand it.