SapientNitro and Razorfish merge to form SapientRazorfish, Establishes Unmatched Leader Against Emerging Customer Experience, Digital First Imperative

Regulatory News:

Publicis.Sapient, part of Publicis Groupe (Paris:PUB) [Euronext Paris: FR0000130577, CAC40], today announced the merger of SapientNitro and Razorfish to form SapientRazorfish which is designed to better fuse the significant experience and technology capability across the two businesses in response to client needs for digital expertise at scale. These changes come against a backdrop of increasing client demand to transform their businesses to be digital-first, given the increasingly connected consumer and the changing competitive landscape. This merger creates a new entity and unmatched leader as clients grapple with the dual objectives of change and speed -- how to transform to be more digitally-driven businesses, and how to design and implement these changes at the rapid pace of change being dictated by the marketplace. SapientRazorfish is a new breed of digital transformation partner, able to reimagine the future through radical customer centricity built on an incredibly strong track record of delivering real change for clients.

Clients are seeking transformation partners who can combine customer and operational expertise.

"We have had great success in helping our clients with their transformation programs since the formation of Publicis.Sapient in early 2015,” said Alan Herrick Chairman of Publicis.Sapient, "And across these engagements we are seeing several clear trends:

• Clients are pursuing strategies of customer intimacy given the plethora of real-time and digital touch points.
• Additionally, data is an integral part of how intimately companies can know their customers and act in ways that add value to their customer relationships.
• Finally, at the same time that clients are reinventing their interaction with customers they are simultaneously focused on improving operating efficiency through the use of technology across the enterprise.”

Publicis.Sapient is evolving to advance the speed and scale at which it helps clients transform.

"By creating SapientRazorfish, and by implementing a more integrated management structure, we are combining the very best digital and technology assets in one combined unit,” continued Herrick. "SapientNitro and Razorfish have been clear market leaders since the invention of digital. To now bring them together builds on the great success we have seen in many recent collaborations with clients.”

SapientNitro and Razorfish have, for many years, been the recognized leaders in digital and technology, including most recently when each was recognized in the sought after "upper right” quadrant in the Gartner Magic Quadrant for Digital agencies in 2016, the Forrester e-commerce Wave in 2015 and Forrester innovation Wave in 2014. SapientRazorfish, when coupled with the full power of the Publicis.Sapient platform – which includes Sapient Consulting, with its deep industry and operational expertise, and DigitasLBi, with its powerful data-centered customer relationship management capabilities – is unique in its ability to help its clients define their digital business strategy and execute rapidly across complex organizations.

It is standing up a more integrated management structure to advance how it connects its people, capabilities and ideas in service of clients.

Key management changes are summarized below:

• Alan Herrick will move to the role of Chairman, Publicis.Sapient, focusing on strategy and market development at the Publicis.Sapient and Publicis Groupe level. Additionally, Alan will continue to advise our clients’ CEOs and their Boards as they consider how best to undertake digital transformation efforts
• Alan Wexler and Chip Register will become Co-CEOs of Publicis.Sapient, assuming responsibility for day-to-day business operations
• Alan Wexler will assume responsibility for the newly-formed SapientRazorfish as CEO
• Chip Register will continue in his role as CEO Sapient Consulting and will also lead a combined global practice and delivery structure, designed to better aggregate the incredible breadth of capability in industry consulting, experience and marketing, and technology and data
• Shannon Denton, currently CEO Razorfish, will assume the role of Chief Strategy Officer for SapientRazorfish and will also head global practices for Publicis.Sapient
• Publicis.Sapient will further emphasize a regional collaboration with Nigel Vaz assuming responsibility for an integrated management team in Europe and Asia while Chip Register and Alan Wexler will co-lead North America

This change represents yet another step Publicis Groupe is taking to strengthen its position in digital and advance the Power of One approach that connects all capabilities across the Groupe in a simple, flexible, and efficient way for the benefit of clients.

This new entity will further strengthen the digital leadership position of Publicis Groupe. Publicis Groupe is already the undisputed leader in digital, as its revenue distribution in digital is in a majority position totaling 54%, as outlined on the October 20, 2016 Publicis Groupe earnings call. This is well ahead of others in the marketing and media industries. In acquiring Sapient in 2015 and forming Publicis.Sapient, in moving to solution hubs in December 2015, and in forming the Power of One approach, Publicis Groupe is taking bold steps to more powerfully integrate at the Groupe level. The move to reconfigure Publicis.Sapient is consistent with the Groupe’s recognition of the continued rate of change in the marketplace, the changing needs of its clients and the demands to be increasingly more connected.

Maurice Levy, Chairman & CEO of Publicis Groupe, commented, "For the past 10 years, Publicis Groupe has been leading the way in reshaping our company to be more digital. From the acquisitions of Digitas, Razorfish, Rosetta and most recently Sapient, there is no question that we have set the pace. And when we formed Publicis.Sapient we integrated the strongest set of capabilities in digital, consulting and technology amongst any of our peer group. We are now taking this next, important step, to further integrate these formidable assets. SapientRazorfish is a powerful new entity in the marketplace uniquely combining customer experience strategy, omni channel commerce, and technology deployment to create a new breed of digital transformation partner pointed at today’s most critical client need – reshaping their businesses for the future. I am confident that Alan and Chip, together with the new Publicis.Sapient structure and management in place, will continue to drive digital revenue to our goal of 60% by 2018. Further, I am thrilled to have Alan Herrick working with me on the continued progress we are making at Publicis Groupe as I consider how best to position the Groupe and configure leadership across the many dimensions inherent in steering both our clients, and the Groupe itself, to a prosperous future.”

"We are excited to assume responsibility for leading Publicis.Sapient,” said Alan Wexler and Chip Register, Co-CEOs Publicis.Sapient. "Since its inception in 2015, Publicis.Sapient has uniquely integrated Publicis Groupe’s formidable digital, technology and consulting assets to solve the most highly strategic problem for clients. Now we start this new chapter to further integrate in response to the increasing digital demands of our clients. We are proud to lead an incredibly talented and powerful leadership team that together will reshape the future for our clients and, we believe, the competitive landscape overall as markets reconfigure in new and interesting ways.”

The newly configured Publicis.Sapient will begin fully operating in the new model effective January 2, 2017, although management changes announced are effective immediately.

About Publicis Groupe – The Power of One

Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is a global leader in marketing, communication, and digital transformation, driven through the alchemy of creativity and technology. Publicis Groupe offers its clients seamless access to its tools and expertise through modular offering. Publicis Groupe is organized across four Solutions hubs: Publicis Communications (Publicis Worldwide, Saatchi & Saatchi, Leo Burnett, BBH, Marcel, Fallon, MSL, Prodigious), Publicis Media (Starcom, Zenith, Mediavest | Spark, Optimedia | Blue 449, Performics), Publicis.Sapient (SapientNitro, Razorfish, Digitas, Sapient Consulting) and Publicis Health. These 4 Solution hubs operate across principal markets, and are carried across all others by Publicis One, a fully integrated service offering bringing together the Groupe’s expertise under one roof. Present in over 100 countries, Publicis Groupe employs nearly 80,000 professionals. www.publicisgroupe.com | Twitter: @PublicisGroupe | Facebook: www.facebook.com/publicisgroupe | LinkedIn: Publicis Groupe | http://www.youtube.com/user/PublicisGroupe | Viva la Difference!

About Publicis.Sapient

Publicis.Sapient, part of Publicis Groupe, is a Digital Transformation Platform purpose-built to solve for the challenges of today’s digital world — where companies seek to become fully digital businesses. The Publicis.Sapient platform was forged to address this challenge by helping clients advance 7 key and increasingly interrelated business activities. We do this by uniquely combining Digital Solutions & Business/Technology Consulting. The Platform houses the leading digital pioneers and thinkers from DigitasLBi, and SapientRazorfish, combined with experienced consultants and technologists with deep industry expertise from Sapient Consulting. By dynamically configuring to ensure our clients have access to our full collection and connection of expertise, the Publicis.Sapient platform is creating a new way of working with clients that is agile and responsive to meet the demands of the digital marketplace. Publicis.Sapient is 23,000 people strong, across 100 offices in 50 countries. For more information, visit www.publicis.sapient.com.

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