Publicis Groupe (Publicis) today announced that it has entered into a definitive agreement to acquire Sapient in an all-cash transaction for $25.00 per share. Paris-based Publicis is the third largest advertising agency worldwide, and Boston-based Sapient provides marketing, omni-channel commerce and consulting services across multiple industries. The Management and Supervisory Boards of Publicis, and the Board of Directors of Sapient, have unanimously approved this transaction. The companies are describing the deal as a merger, which will result in Sapient becoming a wholly-owned subsidiary of Publicis Groupe.
Once the transaction has been completed, Publicis will create ‘Publicis.Sapient,’ which will be a new entity tying together Sapient’s three divisions: Sapient Global Markets, SapientNitro and Sapient Government Services. These divisions will combine with Publicis’ existing services: Rosetta, Razorfish Global and DigitasLBi. The new venture will employee 75,000 people worldwide and have an annual revenue of approximately $10 billion.
“Sapient is a ‘crown jewel,’ a one of a kind company born in the technology space with strengths in marketing, communications, consulting and omni-channel commerce, all of which are equally important to best help clients achieve their digital transformation,” said Marice Lévy, Chairman and CEO of Publicis. “It will also give Publicis Groupe access to new markets and creating new revenue streams. This acquisition fulfills many of Publicis Groupe’s objectives: we will enhance our leadership position in digital, achieve our goal of deriving 50% of our revenues from Publicisgroupe.com 3/9 digital and technology three years ahead of our 2018 plan, and leverage technology, consulting capabilities to expand in new verticals, and offering new and exciting opportunities to our talents.”
Regarding the acquisition, Sapient President, CEO and Co-Chairman Alan J. Herrick had this to say:
“This transaction provides substantial value to our shareholders, offers an ideal cultural match for our people and provides an opportunity to share a wealth of new capabilities with our clients. The Sapient team has been on a 24-year journey building a company with the objective of creating significant impact for our clients and the industries in which they operate. With Publicis Groupe, we have found a partner that accelerates the level of transformation we can drive into the marketplace.”
For further information about this story, please see the Wall Street Journal.
