Publicis Groupe acquires Sapient

French advertising network Publicis Groupe has acquired the US-based digital marketing firm Sapient for $3.7 billion.

Publicis Groupe announced the acquisition of US-based digital marketing company Sapient in an all-cash transaction for $25 per share, worth $3.7 billion. The management and supervisory boards of Publicis Groupe and the board of directors of Sapient unanimously approved the agreement.

A statement from the French advertising group states that it will create a platform to be named Publicis.Sapient exclusively on digital transformation at the convergence of communication, marketing, commerce and technology. Leveraging the capabilities of SapientNitro, Sapient Global Markets, Sapient Government Services, DigitasLBi, Razorfish Global and Rosetta, Publicis.Sapient will be the unique global platform, delivering profoundly transformational services to clients.

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

Says Maurice Lévy, chairman and CEO of Publicis Groupe, "This acquisition fulfills many of Publicis Groupe's objectives. We will enhance our leadership position in digital, achieve our goal of deriving 50 per cent of our revenues from digital and technology three years ahead of our 2018 plan, and leverage technology, consulting capabilities to expand in new verticals, and offer new and exciting opportunities to our talents."

Adds Herrick, "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. With Publicis Groupe, we have found a partner that accelerates the level of transformation we can drive into the marketplace."