Publicis, one of the giants of the traditional Advertising Agency model and the Agency which failed to merge with Omnicom some months ago, has acquired a Digital Agency/Business, Sapient.
For 3.7 Billion usd in fact.
It's all cash at circa 25 dollars a share and creates 'Publicis Sapient' and through "integration" (job losses) between the two, claim to bring savings of 60 million a year. They also acquired 'Razorfish' recently.
Sapient started in 1990 and largely was seen as a tech company but this deal brings it more into mainstream marketing. It advised companies on IT but was seen as an early-adopter of the Web and a fairly "cool" google-esque style and structure.
What it shows again, is the role of the changing traditional Ad Agency where traditional media is now something of a futile pursuit. The money is in digital and the audience is in digital.
Publicis, whom I one-time represented, were very much in the traditional space and at least, they are moving more into digital using cash to do it. However, culture will always be an issue.
You can't just be seen to be in digital, you have to want to be.
But at least, they're recognising that and doing something about it.
Good all round really.
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