ACQUISITION OF ROSETTA CLOSED
Paris, France, July 5, 2011 Publicis Groupe (Euronext Paris: FR0000130577) announced today the closing of its acquisition of Rosetta. The transaction was subject to customary closing conditions, including clearance under the HSR act.
Publicis Groupe acquired Rosetta for US$575 million in cash paid out of Publicis Groupe’s cash reserves. Under the terms of the agreement, Rosetta’s manager-shareholders may also receive a potential deferred payment in 2014 based on the agency’s performance in 2011 2013.
Rosetta will operate as an autonomous, stand-alone brand within Publicis Groupe under the leadership of its founder & CEO Chris Kuenne, who will remain at the head of the agency, reporting to Jean-Yves Naouri, Chief Operating Officer of Publicis Groupe.
The addition of Rosetta to Publicis Groupe’s other digital businesses which include
Digitas, Razorfish and Publicis Modem will strengthen its position as a world-leading digital communications group. The acquisition of Rosetta will increase the Groupe’s digital business to account for slightly over 30% of total revenue.
The Publicis Groupe consolidated financial statements will include Rosetta’s operations as of July 1st, 2011. Organic revenue growth figures will exclude the revenue achieved by
Rosetta until one calendar year after consolidation of the newly acquired entity (i.e., as of
June 30th, 2012).
This acquisition is consistent with Publicis Groupe’s target to increase its revenue derived from digital (28% in 2010) to 35% over the next three years.
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