Publicis Group aims to dominate digital marketing space with US$3.7bn Sapient acquisition

European headquartered marketing agency, Publicis Groupe, has acquired marketing consultancy and omni-channel technology group, Sapient, for US$3.7 billion as it seeks to lead the converging marketing, commerce and technology space.

Under the agreement, the two organisations plan to create a new platform, called Publicis.Sapient, which will focus on digital transformation consulting services and technology. The combined group will also leverage Publicis-owned businesses, Razorfish Global, Rosetta and DigitasLBi.

Sapient CEO and co-chairman, Alan J Herrick, will join Publicis’ senior leadership team as CEO of Publicis.Sapient, while its co-founder and co-chairman, also joins the Publicis Groupe Supervisory Board.

Publicly listed Sapient was founded in 1990 in Boston and now has offices in 37 cities including Sydney, Melbourne and Brisbane, with a total of 13,000 staff. The business is divided into three divisions, SapientNitro, Sapient Global Markets and Sapient Government Services, and chalked up US$1.356 billion in revenue in the year to 30 June, 2014.

SapientNitro strategy director: Obsession with digital in marketing inhibits innovation

Customers stretch across retail, financial services, technology, consumer packaged goods, travel and leisure and government.

“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,” said Publicis Groupe chairman and CEO, Maurice Levy, following the announcement.

“It will also give Publicis Groupe access to new markets and creative new revenue streams.”

The deal gives Publicis Groupe a huge boost to its digital marketing capabilities and resource pool. The company noted that it will now achieve its goal of deriving 50 per cent of total revenues from digital and technology services three years ahead of its 2018 plan, while opening up the ability to address new verticals.

Combined, the two companies will boast of total revenues exceeding 8 million Euros and 75,000 people globally. The deal is an all-cash transaction and has already been approved by the boards of both companies.

In a statement, Herrick said the transaction was an “ideal cultural match” and paves the way to offering a deeper set of services to its 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,” he said. “With Publicis Groupe, we have found a partner that accelerates the level of transformation we can drive into the marketplace.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandateWe currently have Available FOB Rotterdam/Houston for JP54,D2, D6, JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Hi This is George, Thanks for sharing this nice information about foodpanda blockchain. During this pandemic situation food delivery indu...

George David

foodpanda launches blockchain-based out-of-home advertising campaign

Read more

Did anyone proofread this document before it was published?

Beau Ushay

CMO Momentum 2020: How to embrace agile marketing

Read more

JP 54, D2, and D6 EN590,JET A1 AVAILABLE ON FOB DIP AND TEST IN SELLER TANKWe Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel ...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

An honest and hardworking conveyancer doesn't need a marketing strategy. His past clients will spread the word for him. These days the ho...

Bagen Andrea

What this millennial marketer is doing to shake up conveyancing

Read more

Blog Posts

Commissioning personas that get used

How to avoid the bottom drawer, and how to get value from the work you’ve paid for

Melanie Wiese

Chief strategy officer, Wunderman Thompson

Why It’s Going To Be A Bumper Holiday Season Despite the Pandemic

Behavioural science expert Dan Monheit, co-founder and strategy director of creative agency, Hardhat, writes that marketing chiefs should hold their nerve, as they have reason to be optimistic

Dan Monheit

Co-founder, Hardhat

Why marketing and UX teams must join IT on cyber security

For far too long, cyber security has been considered the sole domain and concern of the IT department, with other departments including marketing, UX and design, firmly entrenched in the belief it is not their concern. The reality could not be further from the truth. In fact, this view is dangerous as it could lead to irreparable brand damage and a lack of trust in consumer behaviour.

Nicki Doble

CIO, Cover-More Group

Sign in