According to multiple sources, Publicis Groupe is acquiring data marketing giant Epsilon. In the past, Publicis Groupe has shared its interest in acquiring the data marketing giant and they have finally announced that they will be acquiring the company. The deal which is estimated to be about $4.4 billion is said to be one of the marketing industry’s biggest takeovers. It surpasses the $3.7bn Publicis paid for Sapient in 2014 and comes close to Dentsu’s $4.9bn acquisition of Aegis Group in 2013 and WPP’s $4.7bn buyout of Young & Rubicam in 2000.
This deal comes after Alliance Data the owner of Epsilon said that the data management giant will be exploring strategic alternatives for the business. The owner stated that the company will also be exploring the potential sale of the business. Apart from Publicis, other parties have shown an interest in acquiring the brand. The other parties include Goldman Sachs.
Epsilon Data Management, LLC provides direct marketing services. They offer marketing technology, strategic consulting, marketing analytics, email and loyalty database predictive modelling, proprietary data, and digital marketing services. They are ranked among the top marketing services firms and direct marketing agencies in the world by Ad Age. Their client roster includes brands like Sephora, Dell, Volvo and Marriot
What the Acquisition of Epsilon will do for Publicis Groupe
According to sources, this deal would give Publicis Groupe a huge competitive edge. It will give the network an arsenal of tools that would help them woo marketers. They will gain a wealth of first-party data assets from Epsilon. Something Publicis Groupe has previously lacked in the past.
Publicis Groupe and Epsilon Speak on the Acquisition
Publicis Grope’s Chairman and CEO Arthur Sadoun spoke about the acquisition. He stated the acquisition of the data management giant will bring the necessary technology, expertise and the talent to complement their offer in creativity, media and business transformation. According to Sadoun, the acquisition will help their clients, leapfrog their competition and allow them to grow profitably. It will also allow the group to deliver personalized experiences at scale for their clients.
Epsilon’s CEO Bryan Kennedy also spoke about the acquisition. He stated that after their extensive discussions with Publicis’s leadership team during their recent review process. They found a powerful common ground which includes share values and a strong vision for the future of data-driven, digital-first marketing.