Epsilon

Epsilon is the American agency of digital marketing.

History

2019: Publicis purchased Epsilon for $4.4 billion

In the middle of April, 2019 the advertizing holding Publicis Groupe announced acquisition of Epsilon for $4.4 billion taking into account taxes. Within the transaction the American agency of digital marketing was estimated at $3.95 billion that more than by eight times exceeds the profit of EBITDA of the company for 2018.

According to the CEO of Publicis Arthur Sadoun, purchase of Epsilon became "very considerable investment for the company of our size". Publicis is sure of correctness of the actions "in the world where data are a basis of all solutions, and the mobile phone will turn into our main interface", he noted.

Publicis purchased the agency of digital marketing for $4.4 billion

According to Reuters, Publicis and other traditional promotion companies lose positions in the market because of the growing competitive pressure from Facebook, Google and the agencies of digital marketing which study activity of users of smartphones in the conditions of toughening of the legislation in the field of data protection.

Having absorbed Epsilon, the French advertizing holding will be able to expand the digital business and to amplify in the North American market. Epsilon collects data about 160 million users and receives the most part of revenue in the USA (as of April 15, 2019).

Clients even more often move the expenses  towards marketing of data and  the solutions connected with Big Data which allow to stimulate involvement of consumers, to support growth and  to cut down expenses. Acquisition of Epsilon  are an instant opportunity to accelerate implementation of strategy for  consolidation of creative approach, data and  technologies for solving of tasks of the clients, to become thereby the leader in  marketing and  business transformation, reported in Publicis.^[1]

Close the transaction which will become one of the largest in the history of the marketing industry, it is planned in the third quarter 2019.

Notes