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Tag: Sapient

  • Publicis Groupe’s revenue up 32% at €2.1 million in Q1 2015

    Publicis Groupe’s revenue up 32% at €2.1 million in Q1 2015

    MUMBAI: Advertising major Publicis Groupe reported a 31.7 per cent jump in first-quarter sales as a result of the positive impact of exchange rates, and partly due to its latest digital acquisition of Sapient.

     

    The agency’s first-quarter sales rose to €2.1 billion from €1.6 billion in the same period last year as the group benefited from the strong dollar and pound sterling compared with the euro.

     

    Acquisitions contributed €274 million or 17.2 per cent of revenue.

     

    Growth Forecast

     

    The company’s organic growth stood at +0.9 per cent. Though global economic growth has seen contrasting trends since the start of the year, Publicis achieved growth notably as a result of its strong presence in digital, which has become its main activity. Digital activities progressed by +4.7 per cent and now account for 50.2 per cent of total revenue. Healthcare also performed well. 

     

    North America revenue grew by 45 per cent to €1.15 billion, followed by Europe with an increase of 21.3 per cent to €575 million. BRIC (Brazil, Russia, India and China) and MISSAT (Mexico, Indonesia, Singapore, South Africa, Turkey) markets rose by 13.2 per cent to €215 million euros. India, specifically, continued on the road to recovery with growth of +5.7 per cent.

     

    The agency said that in December, revenue will grow at two per cent above the industry average each year from 2016, with digital operations rising to 60 per cent of sales in 2018. Publicis predicted that the operating margin will rise to between 17.3 and 19.3 per cent of sales in 2018, compared with 15.3 per cent in 2012.

     

    Publicis Groupe chairman and CEO Maurice Levy said, “Our revenue is up to slightly over 30 per cent, partly due to the positive impact of exchange rates, and partly to the inclusion of Sapient since completing the acquisition. As we’ll continue to see, this is one of the important milestones of the Groupe’s transformation. We expected organic growth to be slightly down this quarter, but, on the contrary, it is up almost one per cent. This isn’t yet the growth rate we expect to see out of Publicis Groupe, but is nonetheless an encouraging return to growth.”

     

    “The main event of this early part of the year has been the completion of the Sapient acquisition, an event that gives Publicis Groupe a new strategic dimension while excelling the Groupe’s transformation. The integration process is already underway and the prevailing spirit is excellent,” Levy added.

     

    With the acquisition of Sapient, Publicis Groupe has become the only global group present all along the value chain – from consulting to marketing, from communications to commerce – brought to life through an outstanding expertise in the most high-performing technologies.

     

    Levy is hopeful that the second quarter will be better than the first, albeit with modest growth. Organic growth is expected to be higher in the second half-year. The Groupe expects that its high exposure to digital activities will ensure its future growth and the continued improvement of its margins between now and 2018. 

     

    Publicis Groupe is the third largest global advertising holding company in the world after WPP and Omnicom. 

  • Publicis Groupe to acquire Sapient for $3.7 billion

    Publicis Groupe to acquire Sapient for $3.7 billion

    MUMBAI: Publicis Groupe and Sapient have announced that they have entered into a definitive agreement under which Publicis Groupe will acquire Sapient in an all-cash transaction for $3.7 billion, or $25 per share.

     

    The agreement has been approved unanimously by the management and supervisory boards of Publicis Groupe and the board of directors of Sapient.

     

    Publicis Groupe chairman and CEO Maurice Levy said, “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. It will also give Publicis Groupe access to new markets and creating new revenue streams.”

     

    “This acquisition fulfills many of Publicis Groupe’s objectives: we will enhance our leadership position in digital, achieve our goal of deriving 50% of our revenues from Publicisgroupe.com 3/9 digital and technology three years ahead of our 2018 plan, and leverage technology, consulting capabilities to expand in new verticals, and offering new and exciting opportunities to our talents,” he added.

     

    The acquisition will accelerate achieving Publicis Groupe’s objective to become the leader at the convergence of communication, marketing, commerce and technology, said the press release.

     

    Through this, the company will create a platform to be named Publicis.Sapient, which will focused exclusively on digital transformation and the dynamics of an always-on world across marketing, omni-channel commerce, consulting and technology.

     

    Sapient CEO and co-Chairman Alan J Herrick will also be joining Publicis Groupe senior management team as CEO of Publicis.Sapient and Sapient co-founder and co-chairman Jerry A Greenberg will join the company’s supervisory board.

     

    Sapient president, CEO and co-chairman Alan J Herrick added, “This transaction provides substantial value to our shareholders, offers an ideal cultural match for our people and provides an opportunity to share a wealth of new capabilities with our 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. With Publicis Groupe, we have found a partner that accelerates the level of transformation we can drive into the marketplace,” he further stated.

     

    The combination of Publicis Groupe and Sapient is expected to drive cost savings through the integration of digital production leveraging Sapient’s substantial production infrastructure in India, real estate consolidation, G&A reductions and procurement savings, said the companies in a joint statement.

     

    “The newly created Publicis.Sapient platform will create significant opportunities for our tremendously talented people across the platform. We will also be able to deploy our capabilities on a global scale through Publicis Groupe’s significant international presence. With access to the world’s greatest creative talent and media expertise, as well as a strong global footprint, we will be better positioned to identify and pursue market opportunities all over the world,” added Herrick.

     

    In connection with the tender offer, Jerry A Greenberg, J Stuart Moore, and Alan J Herrick have entered into a tender and support agreement with Publicis Groupe pursuant to which they have agreed to tender an aggregate of approximately 18 per cent of Sapient’s outstanding shares in the offer.

     

    The completion of the tender offer is subject to certain customary terms and conditions, including the tender of at least a majority of the outstanding shares of Sapient, antitrust and other regulatory clearances in the US, and antitrust clearance in Germany. The transaction is expected to close in the first quarter of 2015.

     

    The completion of the tender offer is subject to certain customary terms and conditions, including the tender of at least a majority of the outstanding shares of Sapient, antitrust and other regulatory clearances in the US, and antitrust clearance in Germany. The transaction is expected to close in the first quarter of 2015, added the press release.

     

    BofA Merrill Lynch and Rothschild acted as financial advisors and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Publicis Groupe while Goldman, Sachs & Co. and Blackstone Advisory Partners L.P. acted as financial advisors and Cravath, Swaine & Moore LLP acted as legal advisor to Sapient.