Staff Reporters
Nov 3, 2014

Updated: Publicis to acquire 'crown jewel' Sapient for $3.7 billion

GLOBAL - The boards of Publicis Groupe and Sapient have approved an agreement to form an entity that will operate as Publicis.Sapient.

Updated: Publicis to acquire 'crown jewel' Sapient for $3.7 billion

The all-cash transaction for $25 per share has been approved by the boards of both companies. 

Sapient CEO and co-chairman Alan J. Herrick will join Publicis Groupe's senior management team (Directoire+) as CEO of Publicis.Sapient. Jerry A. Greenberg, co-founder and co-chairman
of Sapient, will join the Publicis Groupe Supervisory Board.

The purchase "accelerates achieving Publicis Groupe’s objective to become the leader at the
convergence of communication, marketing, commerce and technology", the company said in a press release. 

As a result of the acquisition, digital will account for more than 50 per cent of Publlicis' revenue, three years ahead of the 2018 plan, the company said.

“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," Maurice Lévy, chairman and CEO of Publicis Groupe, said in the release.

According to R3, which tracks industry investments, Publicis Groupe has spent more than US$7.5 billion on digital acquisitions since 2006, when it bought Digitas. Other major additions include LBi, Razorfish, Rosetta and Rokkan.

Greg Paull, R3's principal, noted that Sapient's business in Asia was not on a par with that in the US, but that that could now change. "With a greater focus from Publicis Groupe and better access to clients, this could be a powerful proposition," he said.

The deal "should allow the group to get beyond the CMO and talk to the CIO and the CFO. Sapient has moved upscale in digital consulting, so this is a major shift for Publicis Groupe," Paull said.




Related Articles

Just Published

19 hours ago

Mindshare adds dedicated China leadership

EXCLUSIVE: APAC CEO Amrita Randhawa has relinquished her China responsibilities to two new leaders, Benjamin Condit and Linda Lin.

19 hours ago

Pinterest unveils new tools and insights for marketers

Major takeaways from the platform’s first global advertiser summit.

19 hours ago

Crash Course: How to develop a content strategy

You know content should be a key part of your overall brand strategy, but where do you start? This course explains the key steps you should take to ensure an effective content journey.

20 hours ago

The unlimited potential of live storytelling in ...

Brands like Standard Chartered, Uber Eats and Mastercard achieve impact by marrying human emotions with the unpredictability and excitement of live sports.