 Arthur Sadoun |
Publicis Groupe is acquiring Alliance Data’s Epsilon unit for $4.4B as part of its drive to become “a leader in the data-led, digital-first world.”
CEO Arthur Sadoun said with the mainstreaming of direct-to-consumer brands and new data regulations, the Epsilon deal will enable Publicis to “deliver personalized experiences at scale.”
Epsilon recorded 97 percent of its $1.9B 2018 revenues from clients in the US. It employs 9,000 staffers, of which 3,700 are data scientists and 2,000 are technology delivery experts in Bangalore.
Publicis will forge a strategic partnership with Alliance Data’s remaining businesses.
The Epsilon deal is expected to close during the third quarter.
Publicis also reported a 1.7 percent rise to Q1 revenues to $2.7B. Organic growth dipped 1.8 percent.
The flagship North America unit, which generates 53.8 percent of revenues, was flat, though down 4.6 percent on an organic basis.
Sadoun blames advertising and media losses for the lackluster NA performance.
Public Policy Holding Company registered 23.8 percent Q3 growth to $48.8M, with organic growth contributing 4.5 percent and the balance driven by merger & acquisition activity.
Publicis Groupe reported 3.1 percent in Q3 growth to $4B, sparked by a 3.6 percent jump North America, its biggest market.
WPP suffered a 10.2 percent drop in 1H revenues to $6.7B and a 47.8 percent plunge in operating profit to $297M.
Interpublic reported Q2 net revenues dropped 6.6 percent to $2.2B and operating income tumbled 23.4 percent to $243.7M. 
WPP has adopted a gloomier profit and sales forecast due to a deteriorating Q2 financial performance triggered by weak client spending as companies cope with the challenging economic backdrop.
