The digital major, which has 13,000 employees globally, had forayed into the Middle East in 2010, but exited in 2012.
Publicis Groupe and Sapient today announced that they have entered into a definitive agreement under which Publicis Groupe will acquire Sapient in a $ 3.7 billion deal.
A joint statement informed that the agreement has been approved unanimously by the management and supervisory boards of Publicis Groupe and the board of directors of Sapient.
Maurice Lévy, chairman and CEO of Publicis Groupe, 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. 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 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 offering new and exciting opportunities to our talents.”
Alan J Herrick, president, CEO and co-chairman, Sapient, will join the Publicis Groupe senior management team as CEO of Publicis.Sapient, the new platform for all digital initiatives from the Publicis Groupe.
Publicis.Sapient will house the three divisions of Sapient – SapientNitro, Sapient Global Markets and Sapient Government Services – besides Publicis Groupe’s digital brands DigitasLBi, Razorfish Global and Rosetta.
Jerry A Greenberg, co-founder and co-chairman, Sapient, will join the Publicis Groupe Supervisory Board.
Herrick added, “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.”
Sapient bills itself as a services company that helps clients transform in the areas of marketing, omni- channel commerce and consulting. It was founded in 1990 and has 13,000 employees in offices across 37 cities, in the Americas, Europe and Asia-Pacific. It registered over $1.3 billion in revenue in the year ended June 30, 2014.
With the addition of Sapient, Publicis Groupe will have combined revenue in excess of €8 billion, combined EBITDA of approximately €1.3 billion and over 75,000 people worldwide, the statement added.
The transaction is expected to close in the first quarter of 2015, following which Sapient will merge with a subsidiary of Publicis Groupe and become its wholly owned subsidiary.
Also read:
SapientNitro expands into the Middle East (2010)
SapientNitro closes regional doors following loss of Mars (2012)