A leading provider of loyalty solutions and data-driven marketing worldwide, Alliance Data System Corporation, made an announcement today about its entry into an ultimate agreement to let Publicis Groupe, which is one of the largest market leaders globally, purchase its Epsilon business. The price of selling was $4.4 billion. With the agreement of all the transaction was approved by the Board of Directors of Alliance Data.
After the fees associated and tax obligations, the net cash proceeds are predicted to be $3.5 billion. The amount will be utilized by the Alliance Data to repay the debts and purchase the shares again.
CEO of Alliance Data, Ed Heffernan stated: “I’m pleased to say today’s announcement represents a trifecta win for Alliance Data, Epsilon, and Publicis Groupe. The announcement of this transaction represents the culmination of an extensive assessment of strategic options for our Epsilon business. With this transaction, Alliance Data is executing on its previously announced goals of transitioning into a leaner, more focused organization and unlocking additional shareholder value while also finding what we believe to be the right home for Epsilon’s technology, data assets, and associates. We believe that Publicis Groupe will be the ideal cultural and strategic fit for Epsilon and its Conversant® business, and will help drive Publicis Groupe’s own transformation in today’s data-driven digital world. Furthermore, the unique relationships that have been cultivated between Epsilon and our other Alliance Data businesses will remain intact, and we look forward to working with Publicis Groupe to develop a broader relationship, and promoting mutual and sustainable growth going forward.”
CEO of Publicis Groupe, Arthur Sadoun stated: “Epsilon is a unique asset with world-class capabilities that many of Publicis Groupe’s clients are clamoring for us to add to our current portfolio. Acquiring Epsilon will allow Publicis to be uniquely positioned to be the preferred partner of our clients in their transformation by delivering personalized experiences to clients at scale. As part of Publicis, we believe Epsilon will be able to take advantage of our breadth and strengths to drive improved growth. We are also excited about growing our relationship with Alliance Data’s other businesses. We look forward to welcoming Bryan and the rest of the Epsilon team to the Publicis Groupe family.”