Publicis Groupe, the third largest ad group in the world, will acquire the Alliance Data Systems communications division for $ 4.4 billion. Through the deal, the French giant seeks to increase its expertise in the digital environment and expand its operations in the United States of America.
The owner of Saatchi & Saatchi, Leo Burnett and others, who also work in Bulgaria, will acquire Epsilon, which specializes in email marketing, as well as in the collection of transaction data, location and user activity on the Internet.
The goal is for the company to focus more on data analysis, as consumer giants are increasingly relying on TV ads and billboards, moving their money into internet advertising. Clients face growing challenges in a " of the data, "said Publicis Chief Executive Arthur Sadun.
Traditional marketing companies such as Publicis and WPP are on the one hand against consultancy companies focused on business transformation like Accenture, and on the other - against technology giants such as Facebook and Google, which are taking a huge share of Internet advertising.
The acquisition, the largest in the history of Publicis, will be funded entirely with debt and cash. After paying taxes, the purchase price will be $ 3.95 billion.
In a separate announcement, Publicis said revenue in the first quarter rose 1.7 percent from a year earlier to € 2.12 billion.
Epsilon itself has around 9,000 employees, including 3,700 data processing experts and 2,000 engineers in India. Publicis has around 80,000 employees.