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

Blog Posts

Putting the ‘human element’ back in marketing

During the recent CMO Momentum conference, Paul Mitchell shared how marketing leaders can create cultures that deliver

Paul Mitchell

Managing director, The Human Enterprise

The rise and rise of voice search

In 1982, an AT&T employee by the name of Plotzke predicted the rise of voice: “In fact, it has been predicted that, by 1990, well over half the communications dollars spent by businesses will be for products and services that include voice technologies.

Michael Jenkins

Founder and director, Shout agency

Is design thinking the answer for the next generation of marketing?

The speed and pace of change will never be slower than we’re experiencing today. So in this era of unprecedented change, how can brands meet soaring consumer expectations, stay relevant and deliver differentiated and connected experiences?

Merryn Olifent

Senior consultant, G2 Innovation

Prozac is the brand name of fluoxetine, a prescription drug used to treat depression obsessive-compulsive disorder, and panic disorder. B...

jenson smith

CMO's top 8 martech stories for the week - 19 July 2018

Read more

I have been suffering from (HERPES) disease for the last two years and had constant pain, especially in my knees. During the first year, ...

Steven Kizzy

KPMG Australia appoints ex-Publicis leader as head of brand strategy

Read more

When they say they had to much focus on traditional media, this is code for very bad creative, and very bad category strategy, Clearly th...

Rob

iSelect outlines new approach to arrest ineffective marketing as its reports full-year results

Read more

play barbie games https://www.barbi-igre.net/

Karlo Bozak

Rethinking gamification in marketing

Read more

There are lots of software tools available online that can do what you are asking about and also trace the location of a cell phone and e...

Curtis Bacchus

CMO's top 10 martech stories for the week - 9 August 2018

Read more

Latest Podcast

More podcasts

Sign in