Apr 16, 2019 (Euclid Infotech Ltd via COMTEX) -- - Epsilon is a unique technology and platforms company with unparalleled data assets built over years.
- The addition of Epsilon will propel Publicis as a leader of data-driven personalized experiences at scale.
- Compelling transaction terms leading to shareholder value creation:
--Net purchase price of $3.95 billion after tax step-up, implying an 8.2x 2018 Adjusted EBITDA multiple
--Double-digit accretion to both headline EPS and FCF per share from 2020.
Publicis Groupe announced it has entered into an agreement with Alliance Data Systems Corporation under which Publicis Groupe will acquire Alliance Datas Epsilon business for a net purchase price of $3.95 billion after tax step-up (total cash consideration of $4.40bn) and build a strategic partnership with Alliance Data remaining business. This acquisition will accelerate the implementation of Publicis strategy to become the preferred transformation partner for its clients
The Directoire (Management Board) and the Conseil de Surveillance (Supervisory Board) of Publicis Groupe have unanimously approved this transaction considering it a one-time opportunity to seize, given the evolution of the industry and the implying transformation of marketing solutions.
Arthur Sadoun, Chairman and CEO of Publicis Groupe, said
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. They have to transform to meet this new market imperative
With the acquisition of Epsilon, Publicis Groupe is bringing the necessary technology, expertise and the talent to complement our offer in creativity, media and business transformation, and help our clients leapfrog their competition and grow profitably
In 2018 with an unprecedented run of major New Business wins, we demonstrated that we have the right model to be the preferred partner of our clients in their transformation. This acquisition will accelerate its implementation, turbo-charge our game changers and help us grow faster by offering an even more end-to-end solution to our clients
With this critical move, we are going further, faster and deeper in our own transformation, becoming a leader in this data-led, digital-first world. Its a one-time opportunity, with very compelling financial terms and delivering double-digit accretion of Headline EPS and Free Cash Flow from Year 1 (2020)
We are thrilled to welcome Epsilons remarkable teams and look forward to working together for our clients and growing our relationship with Alliance Data.