Publicis Groupe To Buy Sapient For $3.7 Bln In Cash - Quick Facts

(RTTNews) - French advertising giant Publicis Groupe SA (PUBGY.PK, PGPEF.PK) Monday said it has entered into a definitive agreement to acquire technology consulting company Sapient Corp. (SAPE) for $25.00 per share or $3.7 billion in all cash deal.

The acquisition is expected to be accretive to Publicis' headline earnings per share. In addition to generating run-rate annual cost synergies of 50 million euros, there will be substantial opportunities for Publicis.

The purchase price represents a 44 percent premium to Sapient's closing stock price on October 31, the last trading day prior to the announcement of the agreement.

The agreement has been approved unanimously by the Management and Supervisory Boards of Publicis and the Board of Directors of Sapient. The transaction is expected to close in the first quarter of 2015.

Publicis expects to fund the purchase price with cash on hand and the proceeds of bank and/or capital market indebtedness, without issuing any new equity.