Publicis Groupe to Acquire Epsilon for $3.95 Billion
Publicis Groupe has agreed to acquire Alliance Data Systems' Epsilon business for $3.95 billion. The deal aims to strengthen Publicis' position in providing data-driven personalized customer experiences at scale.
Paris – Publicis Groupe announced in April 2019 its agreement to acquire Alliance Data Systems' Epsilon business for a net purchase price of $3.95 billion. This strategic acquisition is designed to accelerate Publicis' strategy of becoming a preferred transformation partner for its clients by enhancing its capabilities in data-driven personalized experiences.
Epsilon, a US-based technology and platforms company, possesses significant data assets and expertise in maximizing the value of client data. The acquisition is expected to bolster Publicis' ability to meet increasing client demands for personalized marketing and digital transformation in a rapidly evolving industry landscape.
"Our clients are facing increasing pressure from the rise in consumer expectations, the mainstreaming of direct-to-consumer brands and new data regulations. The only response is to deliver personalized experiences at scale," said Arthur Sadoun, Chairman and CEO of Publicis Groupe. He added that Epsilon brings the necessary technology, expertise, and talent to complement Publicis' existing offerings in creativity, media, and business transformation.
The transaction is projected to deliver double-digit accretion to Publicis Groupe's headline earnings per share and free cash flow per share starting in 2020. This move represents a significant step in Publicis' own transformation towards becoming a leader in a data-led, digital-first world, enhancing its end-to-end solution for clients.