Bryan Kennedy confirmed as CEO of Epsilon, once completed the acquisition by Publicis today

Publicis Groupe announced today that they have completed the acquisition of Epsilon, a leading global provider of data-driven marketing and loyalty solutions.
Bryan Kennedy has been confirmed in his position as CEO Epsilon. He gets as well a seat in Publicis Executive Committee, and will report directly to Arthur Sadoun.
Epsilon will become the unique data-tech platform of Publicis Groupe, to deliver personalization at scale.

Eastwind had advanced last February that the French multinational had signed the definitive agreement to purchase of Epsilon from Alliance Data for a total consideration of $4.4Bn in cash. Publicis Groupe will begin consolidating Epsilon’s financial results as of July 1, 2019.

Publicis financed the acquisition of Epsilon through the successful placement of €2.25Bn bonds in three tranches on June 5th, 2019, combined with a term loan and the use of $650 million in cash from the Groupe’s balance sheet. The financing of the transaction aims to maintain a financial profile in line with current BBB+ / Baa2 ratings, with full deleveraging four years after completion of the transaction. Publicis Groupe remains committed to its current dividend pay-out of 45%.

How will Epsilon be integrated into Publicis ?

After many meetings between the Publicis Groupe and Epsilon teams the foundations for the integration of the purchased company into the Groupe have been established based on three key principles: Epsilon will be at the core of Publicis Groupe; Epsilon will turbocharge all of Publicis Groupe’s operations and the main objective of the integration is unlocking growth.

1.- Epsilon will be at the core of Publicis Groupe: Epsilon will become the unique data-tech platform of Publicis Groupe, to deliver personalization at scale. Its expertise in onboarding, enriching and activating clients’ first party data, its data sets and its vertical expertise in the Auto sector will be placed at the core of the Groupe. Publicis PeopleCloud platform and related activities will be folded into Epsilon.

2.- Epsilon will turbocharge all Publicis Groupe’s operations: The integration of Epsilon will accelerate the seamless implementation of the Power of One for the benefit of the clients.

Publicis Communications will leverage Epsilon’s customer insights to improve ideation and build more relevant campaigns, and will power Epsilon’s Dynamic Creative Engine to adapt to real-time consumer context.

Publicis Media’s billions of touchpoints will be connected with Epsilon’s data sets to provide better intelligence to build consumer IDs, segment audiences and maximize media buying ROI.

Publicis Sapient will gain access to deep proprietary customer insights to optimize their clients’ organization and business model.
And Publicis Health will partner with Epsilon’s health practice to deliver outcomes-based measurement and optimization across strategic, creative and media engagements.

3.- Unlocking growth, the main objective: Every Publicis Groupe client will be able to access Epsilon through their Groupe Client Leaders.
This will be effective immediately in the US and will ramp up internationally in the months to come.

The integration plan is focused on unlocking growth: 6 strategic workstreams have been defined, to address subjects ranging from the definition of ‘a go to market’ approach to lead the change in the industry, to how Publicis Groupe is able to leverage Epsilon’s incredibly talented teams of engineers and data experts in India with its own Publicis Sapient-led expertise in the region.
All other integration topics including data privacy, real estate, support functions or shared services are covered by 19 operational task forces.

The assets and talent needed to help clients grow in a data-led, digital-first world, Sadoun underscores

Arthur Sadoun, Chairman and CEO of Publicis Groupe, stated: “We are very pleased to have finalised the closing of the Epsilon acquisition in record time, at a very compelling price, creating immediate value for our shareholders. This acquisition completes our sets of assets harmoniously, with data capabilities that are second to none, and propels the Groupe as the global leader of personalized experiences at scale.

With the addition of Epsilon’s capabilities in data to our existing creative, media and technology firepower, we have all the necessary assets and talent to help our clients leapfrog their competition and grow profitably, in a data-led, digital-first world.
Our clients will benefit from a seamless, end-to-end service to solve all their marketing and transformation challenges across creative, media, data and technology.

Our focus in the next months will be to successfully execute the integration while implementing our model, the Power of One, with our clients.

Over the last few weeks, client feedback has been overwhelmingly positive, showing a huge amount of interest and demand that we will now be able to address. All of this gives us great confidence for the future.”

Image over the headline.- Bryan Kennedy (CEO Epsilon).© Epsilon.

Eastwind Marketing related links:

Publicis signs Epsilon purchase and further strategical collaboration with Alliance Data

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