French advertising services giant
Publicis Groupe SA
) announced a strategic partnership with Israel-based digital
advertising company Matomy Media Group, by acquiring a 20% stake in
the latter. The investment will boost Publicis’ technology
capabilities and is in line with its expansion strategies.
Per the terms of the agreement, Publicis will buy 17.9 million
shares of Matomy stock at 227 pence ($3.65) per share, with an
option to buy an additional 4.9% stake. This translates into the
investment being potentially worth $82 million for a 24.9% stake.
Tel-Aviv-based Matomy specializes in performance-based advertising
and offers technology to help advertisers optimize their online
display and video advertising. The company boasts an impressive
clientele, including American Express Company (
), HSBC and Experian.
The digital advertising industry is presently undergoing a
remarkable transformation, with the technology-driven performance
advertising area showing promising growth potential. The alliance
would give Publicis access to Matomy’s performance marketing
platform and its latest ad technologies.
The French advertising company intends to integrate its established
media-buying and digital-advertising capabilities with Matomy’s
innovative technologies, thus setting up a leading state-of-the-art
platform for performance-based advertising.
The deal signals Publicis’ enduring expansion strategy after its
proposed $35 billion mega-merger with its American counterpart
Omnicom Group Inc. (
) failed earlier this year. Last month alone, Publicis bought top
Italian social media agency Ambito5, Canadian design consultancy
Nurun, design firm Turner Duckworth and Berlin-based marketing
With big companies spending increasing amounts of money on online
marketing, major advertising agencies have been showing remarkable
interest in start-ups as a rapid way to achieve technological
know-how. Last month, Publicis’ key competitor WPP plc (
) invested $25 million in U.S. advertising-technology company
AppNexus. With this deal, Publicis is fast gearing up to capitalize
on the surge in technology-driven online marketing.
Publicis currently sports a Zacks Rank #4 (Sell).
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