posted at 23:50
Author Name: Lara O'Reilly
Publicis Groupe Sapient Acquisition
French advertising holding group Publicis Groupe has announced it is to acquire US-based digital marketing company Sapient in an all-cash transaction for $25 per share, worth $3.7 billion. Publicis says the acquisition will give the agency group access to new markets and the ability to create new revenue streams. Publicis says the new group will deliver around €50 million in cost savings, through the integration of digital production, particularly leveraging Sapient's production infrastracture in India, some real estate consolidation, G&A reductions and procurement savings. The purchase is Publicis' latest effort to bolster its digital offering and comes five months after Publicis called off its attempt to form a merger with Omnicom Group. The acquisition wil create a platform to be named Publicis. Sapient, which the companies say in statement will create the "Largest and most advanced" platform focused exclusively on digital transformation and "The dynamics of an always-on world across marketing, omni-channel commerce, consulting and technology." Publicis. In a statement, Publicis Groupe CEO and chairman Maurice Levy says: "Sapient is a 'crown jewel,' a one of a kind company born in the technology space with strengths in marketing, communications, consulting and omni-chanel commerce, all of which are equally important to best help clients achieve their digital transformation." News of the acquisition comes just a few days after the chief executive of rival advertising holding group WPP, Sir Martin Sorrell, said his company's $25 million stake in AppNexus left Publicis and Omnicom with "Nowhere to go" when it comes to digital advertising.

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