Politics
ADS

Advertising group Publicis' shares boosted by $4.4 bln Epsilon deal

Reuters

By Sudip Kar-Gupta and Gwénaëlle Barzic

PARIS, April 15 () - Publicis' shares rose on Monday as analysts welcomed the French advertising company's $4.4 billion takeover of marketing and data company Epsilon.

Publicis said on Sunday that it would buy Epsilon from U.S. company Alliance Data , expanding Publicis' digital business and North American footprint.

"With a suggested double-digit adjusted earnings per share/free cash flow accretion, the transaction looks attractive on financial terms and gives Publicis an increased amount of consumer data," the Liberum analysts said.

Publicis and other traditional advertisers, such as WPP , Omnicom and Interpublic face losing ground to new technology and software giants.

The traditional advertisers are having to cope with increasing competition from the likes of Facebook , Alphabet's Google and digital marketing specialists that track and target individual clients via their smartphones, while navigating tougher data-protection laws.

On Monday, Publicis said it expected Epsilon would boost its headline earning per share by around 12.5 percent.

"Epsilon is the ideal accelerator for Publicis' strategy," Publicis chairman and CEO Arthur Sadoun said on a conference call.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ADS

Other Topics

World Markets Stocks Economy

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More