Global ad giant Publicis is spending big to position itself as the top agency for brands riding the digital wave, after it announced a deal that sees it acquire Sapient for $3.7 billion. Publicis is paying $25.00 per share in an all-cash transaction at a total valuation that is a 44% premium to Nasdaq-listed Sapient’s most recent share price, as of October 31. The deal, which is described as a merger, will see Sapient become a wholly-owned subsidiary of Publicis Groupe.
French advertising company Publicis Groupe SA on Monday said it has offered to buy U.S.-based Sapient for $3.7 billion in cash as it seeks to speed up its transformation into a digital-technology company and bounce back from its failed attempt to merge with rival Omnicom Group Inc. Publicis said it has entered a definitive agreement to pay $25 for each Sapient share. The statement confirmed a report from The Wall Street Journal. The boards of both companies have approved the transaction unanimously, the statement said. The announcement comes just a few days before Publicis, the world’s third-largest ad company, is due to present to investors its plans for boosting its growth from digital advertising, which is becoming increasingly dominated by data and technology.
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