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!

Error: Please check your email address.
Show Comments

Blog Posts

Maintaining trust in a sceptical world: The power of brand trust

The faith people have in brands creates opportunity for those brands to become trusted advisors. In turn, this builds success by increasing the brand’s profile, letting it broaden its product offering and driving stronger customer loyalty.

Dan Ratner

managing director, uberbrand

When growth stalls: How to boost growth in large organisations

The push to start new businesses continues. In Q1 2017, the number of seed and angel deals increased by 1.4 per cent compared to Q1 2016.

Con Frantzeskos

CEO, Penso

Why we need diversity in marketing

​When we read articles about the need for increased diversity in marketing land, it is often through the lens of gender.

Jodie Sangster

CEO, ADMA

We all know that digital marketing in order to promote a brand, products and services is by the use of electronic media. The evolution of...

Helaina Berry

Predictions: 17 digital marketing trends for 2017

Read more

Interesting insight, well explained and the examples are just apt.Thanks for sharing!

FreshMindIdeas

The politics of branding - Brand science - CMO Australia

Read more

When the world that we live in floods with gigabytes of content every day, we have to learn to be selective about it. Such educational we...

Paulina Cameron

ADMA launches education program to tackle viewability, ad fraud and brand safety

Read more

Hi, i am an Aistralian ALK patient, been on xalkori dec 13 to oct 15 and achieved remission of disease, since been on Ceritinib until no...

gary packer

Pfizer Australia adopts AI-powered digital analyst tool for sales and marketing decision making

Read more

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Latest Podcast

Getting Intimate with CX Ep 5: Tammy Marshall, founder, The B Hive

How much of customer experience is having the foresight to know what those individuals might like, versus asking them? In Episode 5 of this new podcast series, BrandHook MD, Pip Stocks, talks with Tammy Marshall about the importance of asking your customers questions, how consistency plays a role in engagement, but how the unexpected adds extra value.

More podcasts

Sign in