Publicis to buy digital ad firm Sapient for $3.7bn

Publicis, the world's third-largest advertising agency, has agreed to buy digital ad specialist Sapient for $3.7 billion in cash as it seeks to accelerate growth after a botched merger earlier this year.

Publicis said yesterday the deal values US-based Sapient at $25 per share, a 44 per cent premium to Friday’s close. It will be financed through existing cash and new debt and will not affect Publicis’ credit rating.

For Publicis CEO Maurice Levy, the deal is part of a push to revitalise the group at a time when its quarterly top-line growth has lagged behind rivals WPP and Interpublic among others.

Levy has blamed the poor performance on the hangover from Publicis’ failed “merger of equals” with world number two agency Omnicom, which was announced in August 2013 and abandoned in May over control and cultural clashes. – Reuters