Publicis completes “transformative” Sapient deal

Rosie Baker
By Rosie Baker | 9 February 2015

Publicis completed its US$3.6 billion acquisition of Sapient on Friday forming what it is calling a “transformative” global network with “ unmatched capabilities in marketing, omni-channel commerce and consulting, underpinned by tremendous depth of technology expertise”.

Publicis claims that the deal is the “largest and most strategic of its kind in the industry”. It will create the Publicis.Sapient platform built around its slant on digital and technology from Sapient's roots as a tech company.

"This deal dramatically sharpens Publicis Groupe’s profile, establishing us as a leader in marketing, communication and business transformation. Sapient’s marketing, technology and consulting capabilities, its strength in India combined with Publicis Groupe’s global presence, depth in creative, leadership in media, and digital will create a world leader with unmatched capabilities,” said Maurice Lévy, Publicis Groupe chairman and CEO.

“Our clients are facing many adverse trends: from rising global competition, to new comers born from digital, and new paradigms in communications and marketing. With our new capabilities, we will be best positioned to help them transform their businesses and navigate the new world. Alan and his teams will bring tremendous talents to Publicis Groupe. I am extremely happy to have them on board, and very confident for our shared future,"

Sapient is also recognised for its e-commerce and retail technology expertise. Publicis Groupe says it now “stands alone in its ability to do truly transformational work for its clients, stewarding them through their own metamorphoses, and pre-empting the future in a more empowered, convergent world.”

Sapient operates 37 office globally and employs 13,000 people. It has strong growth trajectory of 17% CAGR over 5 years reaching $1.4 billion by the end of 2014.

The deal also comprises SapientNitro, Razorfish Global, Rosetta and DigitasLBi, Sapient Global Markets and Sapient Government Services. The group has combined revenue of €8 billion

Publicis believes that the acquisition also created new revenue streams for shareholders as well as cost savings expected to materialise by 2016.

Alan Herrick, Sapient’s chief executive officer and co-chairman of the board of directors, will lead Publicis.Sapient, as CEO.

Jerry A. Greenberg, Sapient founder and board co-chairman will join Publicis Groupe’s Supervisory Board as an independent member.

Alan Wexler, president, SapientNitro, and Chip Register, executive vice president
and managingdirector, Sapient Global Markets, will join Publicis Groupe’s P12 executive committee.

The deal was first announced on 3 November 2014.

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