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

More Videos

looking for the best quality of SMM Panel ( Social Media Marketing Panel ) is a website where People Buy Social Media Services Such as Fa...

Kavin kyzal

How to manage social media during Covid-19

Read more

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Blog Posts

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Winning means losing in the game of customer retention

At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.

Linda O'Grady

Data Strategy Partner & Business Partner, CX Lavender

Sign in