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What Sapient buy means for Publicis [DNA : Daily News & Analysis (India)](DNA : Daily News & Analysis (India) Via Acquire Media NewsEdge) Last week, as the news of the Publicis Groupe acquisition of Sapient Corporation was being flashed on news tickers, the world of technology and marketing services woke up to what could be the biggest development of the year in the business. After the failed merger of Publicis and Omnicom, the France-based media and marketing services conglomerate headed by Maurice Levy was waiting to make this big announcement that would propel him to the leadership position as the domains of communications, commerce, marketing and technology converge. For the 62,000-people strong Publicis Groupe, the addition of 13,000 workforce from Sapient ensures revenues move to the fast lane and unlocks significant synergies, estimated by Publicis to be in the region of Euro 50 million annually. Said Lévy, Chairman and CEO of Publicis Groupe, on the big buy: "Sapient is a 'crown jewel,' a one-of-a-kind company born in the technology space... This acquisition fulfills many of our objectives: we will enhance our leadership position in digital, achieve our goal of deriving 50% of our revenues from digital and technology three years ahead of our 2018 plan." Added Alan J Herrick, Sapient President, CEO and Co-Chairman: "With Publicis Groupe, we have found a partner that accelerates the level of transformation we can drive into the marketplace." What does this mean for India? Over two-thirds of Sapient's staff works out of India. Yes, to be precise: 8486 folks of 13,000-odd in all. The revenue from India is combined with that of APAC, which is only 4 per cent. In comparison, US and a 3154-member workforce and contributes 68 per cent of total revenues for Sapient. little more on Sapient: Sapient is a global services company with three main businesses. Sapient Nitro which earns 67 per cent of total revenues, Sapient Global Markets that nets 28 per cent of revenues and Sapient Government Services which is small at 5 per cent, but then, it deals with the corridors of power. So what got Publicis so attracted to Sapient that it got ready to pay a premium for each of its shares in a USD 3.7billion all-cash deal? Four reasons: 1 Sapient is a trusted advisor and partner to global Fortune 2000 companies... vital as the competition is getting stiff from the likes of Accenture and Delloite; 2 Sapient operates at the convergence of marketing, commerce, consulting and technology... that's what is going to drive businesses in future. 3 It has the expertise for today's increasingly connected environment: social, mobile, analytics and cloud... if you aren't ahead of the curve in these areas, you are going to be extinct soon 4 Global presence with offices in 37 cities across 15 countries in the Americas, Europe and Asia Pacific, with a highly differentiated global delivery distributed model given its India team And lastly: 5 Some super clients: Coca-Cola, Marks & Spencer, Audi, Unilever, Fiat etc And how will the new entity - Publicis-Sapient - gain?. Publicis with Digitas, Razorfish and Rosetta and Sapient with SapientNitro, Sapient Global Markets and Sapient Government Services offers: A best-in-class digital platform with Euro 2.2 billion digital revenue franchise, led by Herrick, a veteran in the industry 22,000-odd dedicated digital and technology professionals Strong consulting skills and track record Leadership in commerce, offerings across innovative consumer experiences, enterprise technology and consulting Creating emotional connection through immersive experiences - from engagement through to transaction Digital fluency and extensive strategic technology partnerships with leading players in space There are regulatory approvals awaited now in the US and Germany and the deal should close in the first quarter of 2015. Meanwhile, there have been rumours of the Publicis Groupe buying Indian PR firm Perfect Relations. Although there is no formal response from Publicis, according to information received, the group is currently focusing its energies (and monies) on the Sapient deal. Credit:Pradyuman Maheshwari (c) 2014 @ 2014 DILIGENT MEDIA CORPORATION LTD. ALL RIGHTS RESERVED |