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Marketing, ASIA PACIFIC, MARKETING, Publicis overhauls PR and events offering, Restructuring Media Marketing Advertising Company, Alliances Media Marketing Advertising, JV Joint Venture Media Marketing Advertising,
PARIS, October 27 /PRNewswire-FirstCall/ -- First 9 months of 2009: - Revenue: EUR 3.256 billion - Revenue growth (as published): -2.3% - Organic growth: -6.9% - Net New Business: USD 4.8 billion Q3 2009: - Revenue: EUR 1.047 billion - Revenue growth (as published): -5.3% - Organic growth: -7.
Publicis Groupe announces revenue drop - Brand Republic News. Read Publicis Groupe announces revenue drop and other marketing news at Brand Republic. Brand Republic - first for Advertising, Marketing, Media and PR
http://www.brandrepublic.com/News/948300/Publicis-Groupe-announces-revenue-drop/
/PRNewswire-FirstCall/ -- Publicis Groupe SA (Euronext Paris: FR0000130577) announced today the closing of its acquisition of Razorfish. The transaction was subject to customary closing conditions. Publicis Groupe has acquired the Razorfish group from Microsoft in exchange for:
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PARIS, November 16, 2009 /PRNewswire-FirstCall via COMTEX/ --
To best serve its clients, Publicis Groupe today announced the launch of MS&L Group, a strategic initiative designed to strengthen the Groupe's PR and events offer.
In today's world, clients need more holistic and more effective communication with global reach and access to digital and social media capabilities. Clients value a greater consistency and integration of all forms of communications to enhance their brand's awareness and attractiveness. The new organization is designed to meet these expectations.
MS&L Group leverages the collective scale and expertise of MS&L Worldwide, Publicis Consultants Worldwide, JKL, Winner & Associates, TMG Strategies, PBJS, Relay, Capital MS&L, Hanmer MS&L, Carre Noir, SAS, Masius, and Publicis Events. From now on clients will benefit from a full and enhanced suite of PR capabilities and events experience able to resolve any communication issue in any part of the world. Key other assets of Publicis Groupe can be leveraged as needed and particularly PublicisLive, Publicis Meetings, Emotion, Freud, as well as Kekst and Company.
MS&L Group employs more than 2,500 people operating in 50 countries and offers best-in-class Public Relations, Corporate and Financial Communications, Reputation Management, Public Affairs, Social Media, Digital and Live Events management.
This global entity will be run by Olivier Fleurot, CEO of MS&L Group. Olivier reports to Maurice Levy, Chairman and CEO of Publicis Groupe and is a member of the P12, the executive committee of Publicis Groupe. In that capacity, he champions the development of all PR and Events activities.
"The objective of the new MS&L Group is to offer best of breed in PR, corporate or events communications to our clients. Our goal is to take maximum advantage of the great individual assets we have and to build a premier network in this field. Olivier has already done a tremendous job at putting the organization together and enhancing collaboration. I have full confidence that MS&L Group will greatly contribute to the growth of Publicis Groupe," said Maurice Levy, Chairman and CEO of Publicis Groupe.
"By sharing best practices and knowledge across regions, we provide clients with a seamless and consistent approach and help them to manage their most pressing business and communications needs. In a fast-changing world undergoing unprecedented transformation, our clients are looking for an organization that provides both global scale and specialized services. Our network, under one brand, one leadership team, and a common purpose, will be able to meet the challenge," declared Olivier Fleurot, CEO of MS&L Group.
Members of Olivier Fleurot's management team are:
- Pascal Beucler, SVP, Chief Strategy Officer, MS&L Group
- Isabelle Chouvet, CEO, Emotion
- Fabrice Fries, President of France, MS&L Group
- Trudi Harris, Communication Director, MS&L Group
- Anders Kempe, President of Europe, MS&L Group
- Sophie Martin-Chantepie, HR Director, MS&L Group
- Peter Miller, CFO, MS&L Group
- Glenn Osaki, President of Asia, MS&L Group
- John Rossant, Executive Chairman, PublicisLive
- Jim Tsokanos, President of the Americas, MS&L Group
About Publicis Groupe
Publicis Groupe [Euronext Paris: FR0000130577] is the world's fourth largest communications group. In addition, it is ranked as the world's second largest media agency, and is a global leader in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 43,000 professionals. Publicis Groupe offers local and international clients a complete range of advertising services through three global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi, and two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty. Media consultancy and buying is offered through two worldwide networks, Starcom MediaVest Group and ZenithOptimedia; and interactive and digital marketing led by Digitas and Razorfish. Publicis Groupe recently launched VivaKi to leverage the combined scale of the autonomous operations of Digitas, Razorfish, Starcom MediaVest Group, Denuo and ZenithOptimedia to develop new services, tools, and next generation digital platforms. Publicis Groupe's Specialized Agencies and Marketing Services offer healthcare communications, corporate and financial communications, sustainability communications, shopper marketing, public relations, CRM and direct marketing, event and sports marketing, and multicultural communications. Web site: http://www.publicisgroupe.com
SOURCE Publicis Groupe Services
Tags: advertising asia business ceo communications corporate crm direct marketing europe executive france healthcare local marketing media paris president public relations sports web
PARIS, October 27, 2009 /PRNewswire-FirstCall via COMTEX/ --
First 9 months of 2009:
- Revenue: EUR 3.256 billion
- Revenue growth (as published): -2.3%
- Organic growth: -6.9%
- Net New Business: USD 4.8 billion
Q3 2009:
- Revenue: EUR 1.047 billion
- Revenue growth (as published): -5.3%
- Organic growth: -7.4%
"As announced, the advertising market reached its lowest point during last summer. After a fall superior to 13% at the end of June, forecasts now show a decrease by an average 10% for the full year.
During the second quarter, revenue for Publicis Groupe showed a regular decrease, exceeding a negative 10% in June. As previously predicted, July, August and September show improvement. Therefore, 3rd quarter posts an organic growth negative by 7.4% when it was negative by 8.6% for the second quarter.
New Business has been particularly active during the first nine months and Publicis Groupe continues to be ranked first with net wins totalling close to 5 billion US dollars.
Organic growth performances exceeding our peers' and market share gains: this is the result of our teams' excellent performances backed by an offer well adapted to the needs of our clients, particularly in digital. As for digital, we have further strengthened our operations through the acquisition of Razorfish which is being integrated according to our plans and which should be EPS accretive starting as soon as in 2011.
In 2010, our share in digital should exceed 25% of our revenue. The advertising market is starting its recovery which will be slow and progressive. First positive growth numbers should be established during the second half of 2010. Publicis Groupe should continue to outperform the market."
Maurice Levy, Chairman and Chief Executive Officer of Publicis Groupe
3rd quarter of 2009
- 3rd quarter 2009 business activity
As expected, the third quarter improved compared to the second quarter 2009, the lowest point of the market having probably been hit during the summer. For Publicis Groupe the bottom was reached in June. One can assume that the regular deterioration of the market has stopped and that a slow and progressive recovery is under way.
- Revenue in the 3rd quarter of 2009
Consolidated revenue in the third quarter of 2009 was 1,047 million euro, down 5.3% compared to the third quarter of 2008, while organic growth decreased by 7.4%.
Breakdown of 3rd quarter revenue by geographic area
(in millions of Revenue Organic Growth
euros)
Q3 2009 Q3 2008 2009 vs 2008
Europe 359 411 -9.5%
North America 488 481 -5.3%
Asia-Pacific 114 124 -12.4%
Latin America 58 62 -3.1%
Africa & Middle
East 28 27 -0.2%
Total 1,047 1,105 -7.4%
Europe: If worsening market conditions affected every country in Europe, good performance of Publicis Worldwide in France and the Group's media buying agencies in Western Europe and Poland deserve to be highlighted. All activities in the United Kingdom and Southern Europe show sharply declining numbers.
North America: The positive trend in healthcare and digital communications partially offset the decline in all other areas. A decrease of organic growth of 5.3% for North America represents a strong performance.
Asia-Pacific: The markedly negative growth rate in the region reflects a contrasted situation with on the one hand, some mature economies severely hit, and on the other hand, China remaining promising.
Latin America: Organic growth in the region has been mostly generated by Argentina, Venezuela and Colombia. The good performance achieved by PWW and Saatchi & Saatchi in Brazil are also noteworthy.
Africa and Middle East: As elsewhere, growth declined, but to a lesser extent and revenue, thanks to Leo Burnett, the Group's media business and the growth of VivaKi remained stable.
Publicis Groupe at September 30, 2009
- Revenue at September 30, 2009
Consolidated revenue in the first nine months of 2009 was 3,256 million euro, down by 2.3% from the 3,332 million reported in 2008.
PHCG (Healthcare activities) showed improvement, almost stable compared to the previous year thanks to PMD (Personal Message Delivery). Events and Public Relations show a very severe decline. A reorganization program has been initiated to ensure the relaunch of these activities as soon as the market takes off again.
With the advertising market contracting by roughly 13% according to current estimates, organic growth contraction for Publicis Groupe was limited to 6.9%.This figure is attributable to the overall economic environment, was amplified by the Chapter 11 process at General Motors. Decline was limited thanks to the 5.5% organic growth achieved in digital communications.
- Revenue breakdown by geographic area at September 30, 2009,
year-on-year:
(in millions of Revenue Organic Growth
euros)
September 30, September 30, 2009 vs 2008
2009 2008
Europe 1,096 1,284 -10.9%
North America 1,549 1,423 -4.2%
Asia-Pacific 352 367 -9.6%
Latin America 167 174 -0.3%
Africa & Middle 92 84 +0.3%
East
Total 3,256 3,332 -6.9%
It should be emphasized that in the first nine months of 2009, digital communications accounted for 21.3% of Groupe's consolidated revenue, up from 18.5% in the prior-year period (at 2009 exchange rate). Likewise, emerging markets generated 22.1% of total revenue in the first nine months, compared with 21.7% for the same period of 2008 (at 2009 exchange rate).
- Highlights in the first nine months of the year
- New Business: 4.8 billion dollars
New Business at 4.8 billion dollars in the first nine months of the year, remain very satisfactory, Publicis Groupe being ranked number one worldwide by Nomura.
This amount, net of account losses, compares with the 3.7 billion dollar reported in the first nine months of 2008.
In the third quarter alone the following wins are worth noting:
ABInbev-Becks (U.S.A), Barrat (U.S.A), Bristol Myers Squibb (U.S.A.), Cadbury (U.K.), Carrefour (Brazil), Fiat (Brazil), Huiyjan Juices (China), Kerry Foods (U.K.), RBS (U.S.A), Telefonica (Latin America) Wendy's (U.S.A, Canada) and Wing Tai Holdings (Singapore).
- External growth and strategic initiatives
Several major strategic initiatives took place during the first half of the year. Chief among them were the cooperation agreements signed with Microsoft on June 25th 2009, and the acquisition of Razorfish, the world's second largest interactive marketing agency and a Microsoft subsidiary. The Razorfish transaction closed on October 13th and will be consolidated as of that date. The total consideration for the transaction amounted to 369 million euros through delivery of 6.5 million shares and the balance in cash. With this acquisition, Publicis Groupe strengthens its leading position in digital communications, gains additional digital capabilities and enriches the Group's portfolio with blue chip clients. The integration process is rolling out following a precise plan, should bring 13 million dollars of cost savings making the acquisition accretive as of 2011.
- Financial situation at September 30, 2009
At September 30, 2009, net debt is 789 million euro, a 456 million-euro decrease year-on-year.
Average net debt for the first nine months of 2009 is 961 million euro.
At comparable exchange rates, net debt stands 112 million euro lower than at September 30, 2008.
At September 30, 2009, Publicis Groupe has very satisfactory liquidity, with 3.6 billion euro available (3.4 billion excluding uncommitted facilities).
OUTLOOK
Outlook
Taking into account the sharp decrease of the advertising market, numbers booked by Publicis Groupe represent a good relative performance. The Groupe's organic growth in the 3rd quarter signals the end of the continuous deterioration that has been observed month after month since the summer of 2008.
Although overall visibility is low and there is still considerable uncertainty about the state of the economy, Publicis Groupe confirms a gradual recovery with, however, a few more negative quarters and a return to growth likely to occur around the middle of 2010. During this upcoming period, Publicis Groupe anticipates a better performance than the market and will maintain its cost reduction actions.
Publicis Groupe's financial position remains very satisfactory, with strong liquidity and an expected decrease of the average net debt.
About Publicis Groupe
Publicis Groupe [Euronext Paris: FR0000130577] is the world's fourth largest communications group. In addition, it is ranked as the world's second largest media agency, and is a global leader in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 43,000 professionals. Publicis Groupe offers local and international clients a complete range of advertising services through three global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi, and two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty. Media consultancy and buying is offered through two worldwide networks, Starcom MediaVest Group and ZenithOptimedia; and interactive and digital marketing led by Digitas and Razorfish. Publicis Groupe recently launched VivaKi to leverage the combined scale of the autonomous operations of Digitas, Razorfish, Starcom MediaVest Group, Denuo and ZenithOptimedia to develop new services, tools, and next generation digital platforms. Publicis Groupe's Specialized Agencies and Marketing Services offer healthcare communications, corporate and financial communications, sustainability communications, shopper marketing, public relations, CRM and direct marketing, event and sports marketing, and multicultural communications. Web site: http://www.publicisgroupe.com
"Certain statements in this report, apart from historical facts, may constitute forward-looking statements or unaudited financial forecasts. These forward-looking statements involve certain risks and uncertainties and may prove to be materially different from actual future results. All forward-looking statements are expectations as of the date of this report, and Publicis Groupe undertakes no obligation to update them for new events or for any other reason except as required by law. Publicis Groupe encourages you to study carefully all information concerning factors that may impact its business, as described in the Reference Document filed with the French market authority (Autorite des Marches Financiers)."
Appendix
New Business 2009
Key New Business Wins
Digitas
Total (France), TGI Friday's (United States), Whirpool (Brazil), Carrefour (Brazil)
Fallon
The Auteurs (United Kingdom), Kerry Foods (United Kingdom), Burton's Foods (United Kingdom), Unilever (United Kingdom),Cadbury (UK), Innocent (UK), Oxfam International (UK), Comic Relief (UK), The BBC - Olympics 2012 Coverage (UK)
Leo Burnett
Caltex oil (Australia), Carrefour (Colombia), MCYS Government Social Awareness (Singapore), MillerCoors (United States), Turkcell telecom (Turkey), Wellatone-P&G (Russia), Falabella department store (Colombia), TVO television channel (Canada), Alfa telecommunications (Libya), Tourism Board (Singapore), Movistar (Colombia), Telkomsel mobile telecom (Indonesia), Herbapol food (Poland), BMW (China), Ajisen Ramen (China), Alpina (Columbia), Zeebo Toys (Mexico), Shop Direct Littlewoods.com (UK), Fiat (Brazil), Heinz (Mexico), Sportsbet (Australia), Thailand Business Coalition on Aids
Publicis Worldwide
Alitalia (Italy), Carrefour (France/International), Procter & Gamble Crest (United Kingdom), Vichy (United Kingdom), Wrigley (China), Zurich Connect (Switzerland), Century 21 (France), BNP Paribas-Fortis (Belgium), Pernod-Ricard (United Kingdom), Swatch (Brazil), Nestle (Brazil), ABInBev - Beck's (USA), Barratt (USA), RBS (United States), BMW (Singapore), The Chidren's workforce Development Council (UK)
Publicis Consultants
Biscuit LeClerc (United States), Carrefour (France), City of The Hague (Netherlands), Diageo (United Kingdom), FIMF online banking services (Germany), Lactalis dairy products (Italy), Ministry of Agriculture (Netherlands), Ministry of Economy, Industry and Employment (France), Roman Meal (United States), Sanofi-aventis (Germany), Multaq Pharmaceuticals (USA), Mead Johnson (USA), French Hospitals Foundation, Shell (Germany), Ministry of Interior (The Netherlands)
Publicis Healthcare Communications Group (PHCG)
Sanofi-aventis (Aplenzin-United States), Biogen-Idec neurology (United States), Durex (United States)
Saatchi & Saatchi
BingoLotto (United Kingdom), House of Travel (New Zealand), Invalidity Insurance (Switzerland), LMG International auto insurance (Thailand), Panasonic (Indonesia), RTA/Dubai Metro Launch (United Arab Emirates), Suning household electrical appliances (China), Tsingtao beer (China), Midea household electrical appliances (China), Cadbury Dairy Milk (Australia/New Zealand), MillerCoors-Miller Genuine Draft, Keystone, NGD 64 beer (United States), HP (Switzerland/EMEA), San Miguel (UK), Siemens (China), Amway-Nutrilite (China), Maxima (India), Kerry Foods (UK), Wei Chuan (Taiwan), Huiyjan Juices (China), Oak Pacific Interactive-www.renrens.cn (China), Asia games & China Football Club (China), Lion Nathan- Hahn Super Dry (Australia), Sara Lee/Douwe Egberts - Senseo (Belgium/Europe), Haagen-Dazs (France), EurosportBet (France), Vivesco (Germany), Postel (Italy)
Starcom MediaVest Group
Alfa telecommunications (Libya), Capital One (United Kingdom), Cerveceria Nacional (Panama), Heinz (Mexico), Honda (Spain), Kraft Foods (United Arab Emirates), Metro Group (Poland), PTC telecommunications (Poland), PZU financial services (Poland), Schering Plough Claritin (Hungary), CNAMTS health insurance (France), Supermercados Plaza's (Venezuela), Bupa International health insurance (United Kingdom), British Gas (United Kingdom), Comcast (United States), An Post postal service (Ireland), National Foods / Dairy Farmers (Australia), Wrigley food (United States), TGI Friday's (United States), Adevarul Holding media (Romania), Abbott Healthcare (India), Baguepi food (France), MEDEF (France), Telefonica (Latin America), Autoglass (United Kingdom), Bristol-Myers Squibb (United States), World Gold Council (United Arab Emirates)
The KaPlan Thaler Group
Wendy's (United States, Canada)
ZenithOptimedia
Al-Bandar Group multibrand shop (Saudi Arabia), Nestle (Netherlands), Si.mobil Vodafone (Slovenia), Jenny Craig (United States), Ubank (Australia), Jamena Gas Networks (Australia), China Mobile (China), T38/40 weight-loss product (Portugal), MTV (United Kingdom), Panasonic (Indonesia), Turismo de Valencia (Spain), Haberturk newspaper (Turkey), British Airways (United Kingdom), Kang Yuan pharmaceutical products (China), Parques Reunidos amusement parks (Spain), Sanofi-aventis (Ukraine), Madrid 2016 (Spain), ICO public institute for loans and financing (Spain), Tourism of Cataluna (Spain), 118118 (United Kingdom), JP Morgan (United States), TCL electronic components (China), Videocon Group telecommunications (India), Ministry of Community Development, Youth and Sports (Singapore), Travel Channel (Germany), Charles Vogele garment industry (Germany), JKP music production (Germany), Ministry of Agriculture and Rural Development (Poland), LIDL supermarkets (Spain), Saxo Bank (Switzerland), Gucci Group (United States), Perfetti Van Melle confectioner (China), Red Bull (China), Mars (China), Hyundai (Czech Republic), Roads and Transport Authority (United Arab Emirates), Red.Es Public institution, entity for the ministry of industry, tourism, and commerce (Spain), Dairy Queen food (United States), Mortgage Choice (Australia), Marriott (Asia-Pacific), Wearnes Automotive (Singapore), Gamina digital (Taiwan), l'Oreal (Thailand), Turismo del Pais Vasco (Spain), Pringle of Scotland Clothing (International), Georgia Pacific (Spain), WingTai Fashion (Singapore), Unitech Wireless (India)
2009 Press Releases
01/08/09 Mathias Emmerich is appointed Senior Vice President
of Publicis Groupe
01/14/09 Philippe Lentschener leaves Publicis Groupe
02/04/09 Isabelle Simon joins Publicis Groupe as Senior Vice
President
02/11/09 Annual results 2008
02/12/09 Publicis announces that it has repurchased a portion
of its OCEANEs maturing on January, 18, 2018, and is
offering to purchase the remaining OCEANEs for a price of
EUR42.5724 per bond
02/20/09 Results of the standing purchase offer of OCEANEs
maturing on January 18, 2018
03/11/09 Publicis Groupe involves its employees in Group
growth
03/24/09 136 Publicis key executives invest strongly in the
Group
04/15/09 Publicis Groupe pursues its global digital expansion,
acquires Nemos, Swiss leader in multimedia and flash
programming
04/16/09 Publicis Groupe won HP personal systems group
pan-European advertising and digital communications
04/30/09 Eric Giuily leaves Publicis Consultants | Worldwide
05/11/09 Appointments at Publicis Groupe
05/19/09 Publicis Groupe acquires the Publicis MARC Group,
strengthens holistic offer in the Balkan region
05/20/09 Publicis Groupe grants 50 free shares to each
employee in France
06/04/09 Publicis Groupe - General Motors
06/09/09 Publicis Groupe annual general shareholders' meeting,
dividend set at 0.60 euros per share
06/16/09 Publicis Groupe announces the offering of convertible
bonds
06/16/09 Publicis Groupe issue of convertible bonds (OCEANEs)
in the amount of 625 million euros - Final terms for the
OCEANE 2014
06/17/09 Publics Groupe issue of convertible bonds (OCEANEs)
in the amount of 625 million euros - Granting of the AMF
visa
06/19/09 Publics Groupe issue of convertible bonds (OCEANEs) -
Exercise of the over-allotment (greenshoe) option for the
issue of approximately 625 million euros increased to
approximately 719 million euros
06/25/09 Microsoft Corporation and Publicis Groupe announce
broad strategic agreement
06/30/09 Publicis Groupe, second most awarded group in Cannes,
with a total of 101 Lions
07/09/09 Publicis Groupe to receive the 2009 Global Equity
Organization award for the most innovative and creative
plan design for its employee stock plan
13/07/09 Publication date for half-year results
22/07/09 GM
23/07/09 Half-year 2009 results
09/08/09 Publicis Groupe to Acquire Razorfish from Microsoft
Corporation
01/09/09 Publicis Groupe Announces Acquisition Agreement of
Unilever C.R.M. Program "Pour Tout Vous Dire"
03/09/09 Women's Forum for Economy and Society Joins Publicis
Groupe
22/09/09 Publicis Groupe Phonevalley Collaborates With
Microsoft Mobile Advertising on Custom Mobile
14/10/09 Acquisition of Razorfish Closed
For further information: http://www.publicisgroupe.com
SOURCE Publicis Groupe Services
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Oct 19, 2009 (Datamonitor Financial Deals Tracker via COMTEX) --
Publicis Groupe S.A. has acquired Razorfish (formerly Avenue A | Razorfish), a digital advertising agency, from Microsoft Corporation in a transaction valued at approximately $530 million. Both Razorfish and Microsoft are based in the US.
Publicis Groupe is a France-based communications group engaged in advertising, media consultancy and marketing, while Microsoft is engaged in the development, manufacture, licensing and support of software products for various computing devices worldwide.
As consideration, Publicis Groupe has issued 6.5 million treasury shares and paid $286.8 million in cash .
Announcement (August 9, 2009):
Publicis Groupe has signed an agreement to acquire Razorfish from Microsoft.
In addition, the parties have signed a strategic alliance agreement that will become effective at the closing of the transaction.
The total consideration is expected to be paid in a combination of cash and delivery of 6.5 million Publicis Groupe treasury shares. The cash component of the purchase price will be determined based on the value attributed to the shares calculated by the average closing price of Publicis Groupe stock during the 20-trading-day period ending on the eighth business day prior to the closing date of the transaction.
The transaction is expected to close during the fourth quarter of 2009.
Update on August 5, 2009:
According to Reuters, the Wall Street Journal reported that Publicis Groupe is the frontrunner to acquire Razorfish from Microsoft.
Reportedly, the transaction is estimated to be worth between $500 million and $600 million.
Reportedly, Dentsu, Inc., The Interpublic Group of Companies, Inc., Omnicom Group, Inc., and WPP Group plc are also in the race to acquire Razorfish.
Rumor (June 28, 2009):
According to Reuters, the Financial Times reported that Publicis Groupe may acquire Razorfish from Microsoft.
Reportedly, the transaction is estimated to be worth between $600 million and $700 million.
Morgan Stanley is acting as financial advisor and Proskauer Rose LLP is acting as legal advisor to Microsoft. Wachtell, Lipton, Rosen & Katz is acting as legal advisor to Publicis Groupe on the transaction.
Deal Value (US$ Million) 530 Deal Type Acquisition Sub-Category Majority Acquisition Deal Status Completed: 2009-10-14
Deal Participants
Target (Company) Razorfish (formerly Avenue A | Razorfish) Acquirer (Company) Publicis Groupe S.A. Vendor (Company) Microsoft Corporation
Deal Rationale
This acquisition would further enhance the capabilities of Publicis Groupe with a wider pool of resources, talent, and expertise that will help its clients market their products or services in a way that takes maximum advantage of the new digital world. The strategic alliance agreement builds upon and expands the broad strategic cooperation agreement between Microsoft and Publicis Groupe. The agreement helps Publicis Groupe media clients by allowing their agencies to purchase display and search advertising from Microsoft over the five-year term of the agreement on favorable terms, in exchange for certain minimum guaranteed aggregate purchase levels.
Tags: acquisition advertising advisor business communications france legal manufacturer market marketing media products software treasury
Companies: Microsoft Corp. (MSFT)
PARIS, October 14, 2009 /PRNewswire-FirstCall via COMTEX/ --
Publicis Groupe SA (Euronext Paris: FR0000130577) announced today the closing of its acquisition of Razorfish. The transaction was subject to customary closing conditions.
Publicis Groupe has acquired the Razorfish group from Microsoft in exchange for:
- 6.5 million Publicis Groupe ordinary shares held as treasury
shares. As agreed by the parties, the value of those shares was
determined on the basis of the average closing price of Publicis Groupe
ordinary shares over the twenty consecutive trading days ending eight
business days prior to the closing date of the transaction.
- US$ 286.8 million in cash paid out of Publicis Groupe's cash
reserves.
This gives Microsoft a 3.3% stake in Publicis Groupe.
Razorfish (see attached fact sheet) will be a wholly-owned subsidiary of Publicis Groupe and will be organizationally part of VivaKi, the Publicis Groupe media and digital umbrella encompassing Starcom MediaVest Group, ZenithOptimedia, Denuo, Digitas and VivaKi Nerve Center.
David Kenny, Managing Partner of VivaKi and member of the Publicis Groupe Management Board, will be responsible for the successful integration of Razorfish and implementation of the Groupe's growth and synergy programs.
The Publicis Groupe consolidated financial statements will include Razorfish's operations as of October 13, 2009. Organic growth figures will exclude organic growth achieved by Razorfish until one calendar year after consolidation of the newly acquired entity (i.e., as of October 13, 2010). Based on results for the first eight months of 2009, the Groupe's digital business, including Razorfish, would account for slightly over 25% of aggregate revenue.
Publicis Groupe has already attained the goal it set itself to reach 25% of its revenue in digital for the end of 2010, thus strongly consolidating the Groupe's leadership in this key business area of the future.
About Publicis Groupe
Publicis Groupe [Euronext Paris: FR0000130577] is the world's fourth largest communications group. In addition, it is ranked as the world's second largest media agency, and is a global leader in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 43,000 professionals. Publicis Groupe offers local and international clients a complete range of advertising services through three global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi, and two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty. Media consultancy and buying is offered through two worldwide networks, Starcom MediaVest Group and ZenithOptimedia; and interactive and digital marketing led by Digitas. Publicis Groupe recently launched VivaKi to leverage the combined scale of the autonomous operations of Digitas, Starcom MediaVest Group, Denuo and ZenithOptimedia to develop new services, tools, and next generation digital platforms. Publicis Groupe's Specialized Agencies and Marketing Services offer healthcare communications, corporate and financial communications, sustainability communications, shopper marketing, public relations, CRM and direct marketing, event and sports marketing, and multicultural communications. Web site: http://www.publicisgroupe.com
About Microsoft
Founded in 1975, Microsoft (NASDAQ: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential. See http://advertising.microsoft.com for more information.
About Razorfish
Razorfish is one of the largest interactive marketing and technology companies in the world. With a demonstrated commitment to innovation, Razorfish counsels its clients on how to leverage digital channels such as the Web, mobile devices, in-store technologies and other emerging media to engage people, build brand loyalty and provide excellent customer service. The company is increasingly advising marketers on Social Influence Marketing, its approach for employing social media and social influencers to achieve the marketing and business needs of an organization. Its award-winning client teams provide solutions through their strategic counsel, digital advertising and content creation, media buying, analytics, technology and user experience. Razorfish has offices in markets across the United States, and in Australia, China, France, Germany, Japan, Spain and the United Kingdom. Clients include Carnival Cruise Lines, MillerCoors, Levi's, McDonald's and Starwood Hotels. Visit http://www.razorfish.com for more information, and follow Razorfish on Twitter at @Razorfish.
ABOUT US
- Founded in 1995, Razorfish was acquired by aQuantive in 2004
- In 2007, it became a subsidiary of Microsoft through the aQuantive
acquisition
- Razorfish is the second largest interactive advertising agency (Ad
Age) in the U.S. with approximately FY June 30, 2009 revenue of $380
million
- Headquartered in Seattle, Razorfish employs 2,200 people across
offices in 8 countries and 20 cities
- Razorfish is led by Bob Lord (CEO), Dave Friedman (President of
Americas), Darin Brown (President of Europe), Lee Sherman (President of
APAC), Jeff Lanctot (Chief Strategy Officer), Colin Kinsella (Chief
Innovation Officer), Ray Velez (Chief Technology Officer), Sydney
Hunsdale (Client Operating Officer)
CAPABILITIES
- Razorfish helps industry leaders build great brands by creating
engaging experiences for consumers wherever they live in the digital
world
- With a focus on innovation, technology and ROI, Razorfish helps build
its clients' businesses by applying offerings such as:
- Advertising & Branding
- Analytics
- Email Marketing & eCRM
- Emerging Media
- Interaction Design
- Search Marketing
- Strategy & Planning
- Social Influence Marketing
- Technology Architecture & Integration
KEY INDUSTRIES EXPERTISE
- Automotive
- Consumer goods
- Financial Services
- Healthcare & Life Science
- Media & Entertainment
- Retail
- Technology & Telecom
- Travel & Leisure
KEY CLIENTS
- AT&T, Ben & Jerry's, Best Buy, Carnival Cruise Lines, Conde Nast,
MillerCoors, Dell, Disney, JCPenney, Kraft, Levi's, McDonald's,
Mercedes-Benz USA, Microsoft/MSN, Nike, Nortel, Olympus, Purina, Ralph
Lauren, Samsonite, Starwood Hotels & Resorts, Toshiba, Victoria's
Secret, Visa.
SOURCE Publicis Groupe Services
Tags: acquisition advertising architecture australia automotive business ceo china communications consumer corporate crm cruise lines direct marketing email entertainment europe financial services france germany healthcare japan leisure local marketing media nasdaq paris president public relations retail revenue software spain sports sydney technology telecom travel treasury web
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Health Advocate, Inc., the nation´s leading advocacy and assistance company, is pleased to announce that it has been selected to provide its innovative services to Re:Sources, USA´s 12,000 employees and their families.
Jenner & Block LLP Group Profile View information about law firms offering Securities information free on Martindale.com.
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PARIS, Publicis Groupe announced today the acquisition of a majority stake of Capital Advertising, the most important independent agency in the Indian capital Delhi, and one of the key independent advertising agencies in India.
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Publicis Groupe SA. The Group's principal activities cover advertising, media consultancy and buying, and marketing services and specialized communications. Advertising sector ...
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Rapport global sur Publicis Groupe SA. Global social, financial and environmental data, advertising and influence.