Update: Publicis Is Acquiring Boston's Sapient Corp. for $3.7B
The Sapient logo appeared at Fenway Park on the center-field side of the Green Monster for the duration of the Red Sox' 2014 season. The Boston-based consulting company is set to be acquired by Publicis.
With a $2.5 billion market cap, Boston-based marketing and consulting firm Sapient Corp. ($SAPE) is reportedly an acquisition target, with a potential deal to merge with Publicis that could be announced as early as Monday.
The Wall Street Journal reports the French company Publicis, the world's third-largest advertising firm, is on the rebound after a failed tie-up with Omnicom Group ($OMC). It's also looking to speed its transformation into a digital agency, the Journal's Dana Mattioli, Suzanne Vranica and Ruth Bender wrote.
They cited unnamed sources familiar with the matter, who said Publicis and Sapient are close to a deal, but it could still fall apart at the last minute.
Ad giants like Publicis and Omnicom are threatened by competition from Google and Facebook. The acquisition of tech-focused Sapient could be a step toward addressing that--ahead of Publicis' investor presentation, scheduled for this Friday. The Publicis-Omnicom merger was expected to help the two companies compete versus the growing Silicon Valley ad juggernauts, but it fell apart in May amid power struggles.
Sapient's notable Boston-area clients include Fenway Sports Group, the sports and media empire founded by John Henry and Thomas Werner. Fenway's properties include the Boston Red Sox, Liverpool Football Club and the New England Sports Network (NESN). Sapient announced a contract with FSG in the spring in which it is working on increasing fans' digital engagement for FSG properties, including the Red Sox.
Sapient's consulting work ranges from brand identity to IT. It operates in-house creative ad agency SapientNitro, Sapient Government Services in the public sector, and Sapient Global Services, serving capital- and commodity-market entities.
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