Publicis Groupe will acquire Sapient in an all cash transaction worth US$3.7 billion. The agreement has been approved by both Publicis Groupe’s and Sapient’s board of directors.
Maurice Lévy (pictured), 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.”
Levy also added that the acquisition will also give Publicis Groupe access to new markets and fulfill many of Publicis Groupe’s objectives such as “enhancing its leadership position in digital” and achieve its goal of deriving 50% of its revenues from digital and technology.
Publicis.Sapient will be Publicis Groupe’s newly created platform focused exclusively on digital transformation at the convergence of communication, marketing, commerce and technology. Publicis.Sapient will be led by Alan J. Herrick, who has been Sapient’s chief executive officer and a member of the board of directors since October 2006.
Herrick first joined Sapient in 1995 and was instrumental in the top – and bottom-line growth of Sapient’s key business units, having led operation s in North America and Europe. He will also serve on Publicis Groupe’s Directoire+. Jerry A. Greenberg, founder and board co-chairman of Sapient, will join Publicis Groupe’s Supervisory Board as an independent member.
Leveraging the capabilities of SapientNitro, Sapient Global Markets, Sapient Government Services, Digitas LBi, Razorfish Global and Rosetta, Publicis.Sapient will be the “unique global platform, delivering profoundly transformational services to clients through a model that has unmatched reach and capabilities,” the company said in a press statement.
Herrick added that the transaction provides “substantial value to shareholders and “the Sapient team has been on a 24-year journey building a company with the objective of creating significant impact for 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,” said Herrick.
Meanwhile, Publicis also announced several changes on its top management with the company extending CEO Maurice Levy’s tenure to 2017, along with that of Saatchi & Saatchi global chief Kevin Roberts.