The acquisition of at 3.95 billion dollars after tax step- up, implying an 8.2 times Adjusted EBITDA multiple, will be financed through the successful placement of 2.25 billion euros bonds in three tranches on June 5, 2019, combined with a term loan and the use of 650 million dollars of cash on the Groupe’s balance sheet.
Based on pro-forma 2018 numbers, the transaction is 12.5% accretive to headline EPS and 18.3% to Free Cash Flow, excluding any transaction-related synergies.
With the addition, Epsilon will become the data-tech platform of Publicis Groupe, to deliver personalization at scale. Publicis’ focus in the next months will be on executing the integration while implementing its model, the Power of One, with clients.
It will be run by its current CEO Bryan Kennedy, who will join the Groupe Executive Committee and report directly to Arthur Sadoun.
Synergies will be created by combining Epsilon’s creative agency businesses with Publicis Communications North America, while CJ Affiliate will be aligned with Publicis Media to leverage its growth potential.
Publicis Groupe is a global leader in marketing, communication, and digital transformation, driven through the alchemy of creativity and technology. It clients access to its tools and expertise through modular offering.
Publicis Groupe is organized across four Solutions hubs:
– Publicis Communications (Publicis Worldwide, Saatchi & Saatchi, Leo Burnett, BBH, Marcel, Fallon, MSL, Prodigious),
– Publicis Media (Starcom, Zenith, Spark Foundry, Blue 449, Performics, Digitas),
– Publicis Sapient and
– Publicis Health.
Present in over 100 countries, the company employs nearly 75,000 professionals.
Epsilon is a global marketing innovator providing data intelligence and customer insights, technology including loyalty, email and CRM platforms and data-driven creative, activation and execution. Its digital media arm, Conversant®, is a leader in personalized digital advertising and insights through its proprietary technology and trove of consumer marketing data, delivering digital marketing at scale through personalized media programs and through CJ AffiliateTM.