Publicis buys Razorfish
10 August 2009
Publicis Groupe is set to acquire Razorfish from Microsoft for $530m.
Publicis is expected to pay for the digital marketing agency through a combination of cash and Publicis Groupe treasury shares. Razorfish will continue to operate under its own brand and be integrated into Publicis’ Vivaki. According to Publicis chief executive and chairman Maurice Lévy, the acquisition will result in almost a quarter of Publicis’ annual revenues coming from digital communications.
“The acquisition of Razorfish is another step forward in realising our strategic vision of building a world leader in digital communications, a critically important space for our clients,” said Lévy.
In addition to the acquisition, Microsoft and Publicis have signed a strategic alliance agreement that will allow Publicis’ media clients to purchase display and search advertising from Microsoft over the five-year term of the agreement on favourable terms, in exchange for guaranteed aggregate purchase levels. The agreement will also see Razorfish continue to be the preferred provider to Microsoft for digital strategy, creative and experiential marketing services.
Martina Mackintosh, London