Publicis Groupe: Acquisition of Rosetta Closed
PARIS, July 5, 2011 /PRNewswire/ --
Publicis Groupe (Euronext Paris: FR0000130577) announced today the closing of its acquisition of Rosetta. The transaction was subject to customary closing conditions, including clearance under the HSR act.
Publicis Groupe acquired Rosetta for US$575 million in cash paid out of Publicis Groupe's cash reserves. Under the terms of the agreement, Rosetta's manager-shareholders may also receive a potential deferred payment in 2014 based on the agency's performance in 2011 - 2013.
Rosetta will operate as an autonomous, stand-alone brand within Publicis Groupe under the leadership of its founder & CEO Chris Kuenne, who will remain at the head of the agency, reporting to Jean-Yves Naouri, Chief Operating Officer of Publicis Groupe.
The addition of Rosetta to Publicis Groupe's other digital businesses - which include Digitas, Razorfish and Publicis Modem - will strengthen its position as a world-leading digital communications group. The acquisition of Rosetta will increase the Groupe's digital business to account for slightly over 30% of total revenue.
The Publicis Groupe consolidated financial statements will include Rosetta's operations as of July 1st, 2011. Organic revenue growth figures will exclude the revenue achieved by Rosetta until one calendar year after consolidation of the newly acquired entity (i.e., as of June 30th, 2012).
This acquisition is consistent with Publicis Groupe's target to increase its revenue derived from digital (28% in 2010) to 35% over the next three years.
About Publicis Groupe
Publicis Groupe [listed on the Euronext Paris Exchange - FR0000130577 - and part of the CAC 40 index] is the world's third largest communications group. With activities spanning 104 countries on five continents, Publicis Groupe employs approximately 49,000 professionals and offers local and international clients a complete range of advertising services through three global networks: Leo Burnett, Publicis, Saatchi & Saatchi, and numerous agencies including Fallon, 49%-owned Bartle Bogle Hegarty, and Kaplan Thaler Group. VivaKi combines digital and media expertise, allowing clients to connect with consumers in a holistic way, with Starcom MediaVest Group and ZenithOptimedia worldwide media networks; and interactive and digital marketing led by Digitas and Razorfish networks. VivaKi develops new services, tools, and next generation digital platforms. Publicis Groupe offers healthcare communications with Publicis Healthcare Communications Group (PHCG, the first global network in healthcare communications). And with MSLGROUP, one of the world's top five PR and Events networks, also provides expertise in corporate and financial communications, public affairs, branding, and social media marketing.
Website: http://www.publicisgroupe.com | Twitter: @PublicisGroupe | Facebook: http://www.facebook.com/publicisgroupe
About Rosetta
Rosetta is currently ranked by Ad Age among the top US digital agencies and was recently named the #1 Agency to Watch in Ad Age's Agency A-List. Engineered for the connected world, Rosetta was founded in 1998 to pilot brands through an ever-changing marketing landscape and drive measurable business impact. Rosetta enables brands to transform their marketing through the discovery of unique insights about their best consumers' wants and needs and then translates those insights into more personally relevant experiences enabled by technology across all touch points and over time. Rosetta recently acquired LEVEL Studios, a leader in combining content, platforms and devices to create engaging total user experiences.
Rosetta has deep industry expertise in Healthcare, Consumer Products & Retail, Financial Services, Consumer Technology, B2B and Travel & Hospitality. Rosetta is headquartered in Princeton, NJ, with additional offices across North America in New York, Cleveland, Boston, Chicago and Toronto. The addition of LEVEL Studios, a Rosetta Company, adds west coast presence to Rosetta's footprint with offices in Los Angeles, San Luis Obispo and San Jose.
For more information, visit http://www.rosetta.com
CONTACTS:
Publicis Groupe
Peggy Nahmany, Corporate Communication +33(0)1-44-43-72-83
Martine Hue, Investor Relations +33(0)1-44-43-65-00
Rosetta
Kate Clegg +1-216-896-8961
SOURCE Publicis Groupe
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