Publicis Groupe SA has agreed to buy United States data collaboration company LiveRamp Holdings Inc for an enterprise value of about US$2.2 billion (A$3.08 billion).
The global advertising, public relations and technology communications company will pay $38.50 in cash per share, representing a 29.8% premium to LiveRamp’s closing share price on 15 May.
Publicis said the acquisition expanded its investment in technology, data and artificial intelligence (AI)-services to unlock new opportunities for the agentic era and would make it a leader in data co-creation.
The French-based company also raised its forecasts for the 2027-28 financial year, with net revenue to rise 7-8%, compared to 6-7% previously, and headline earnings per share to increase 8-10%, versus 7-9%, as the deal increased its expandable market.
"LiveRamp joining Publicis Groupe is the latest demonstration of our commitment to investing in new talent and innovation, ahead of market shifts,” Publicis Chairman and Chief Executive Officer (CEO) Arthur Sadoun said in a media release.
LiveRamp CEO Scott Howe said this deal represented the best path forward for shareholders by delivering significant and certain cash value at a compelling premium.
“We are thrilled to announce our agreement with Publicis, marking the beginning of an exciting new chapter for LiveRamp and all our stakeholders,” he said in the media release.
AI is causing widespread disruption in the advertising industry, with marketing agencies facing a major threat from tools powered by the technology that can replicate many of their traditional services, according to this Financial Times article.
Data co-creation connects multiple high-value data sources across partners securely, generating new data assets that companies could not build alone.
Publicis' strategy of increasing its access to data to target consumers began in 2019 with its purchase of Epsilon for $4.4 billion.
The acquisition is expected to close by the end of 2026, given LiveRamp shareholder and regulatory approvals.
Shares in Publicis (EPA: PUB) had closed 52 cents (0.67%) lower at €77.10 on Friday, capitalising the company at €16.69 billion (US$19.36 billion).
Founded in Paris in 1926, it has grown to become the world’s largest marketing and communications group based on revenue, with operations in more than 100 countries.
LiveRamp (NYSE: RAMP) shares had closed 53 cents (1.82%) higher at $29.66 on Friday, capitalising the company at $1.87 billion.
