Alliance Data Systems has agreed to sell its Epsilon business unit to Publicis Groupe, an advertising company, for $4.4 billion. Alliance Board of Directors approved the transactions and it is expected to close in early Q3 2019.
“I’m pleased to say today’s announcement represents a trifecta wins for Alliance Data, Epsilon, and Publicis Groupe. The announcement of this transaction represents the culmination of an extensive assessment of strategic options for our Epsilon business,” said Ed Heffernan, president, and CEO of Alliance Data.
“The Group’s governing bodies feel an obligation to study any possibility to strengthen its position thanks to assets that could fit the Group’s strategy and bring enhanced service to the Group’s clients while reinforcing its competitiveness for the future,” Publicis said in a statement.
“Epsilon is a unique asset with world-class capabilities that many of Publicis Groupe’s clients are clamoring for us to add to our current portfolio. Acquiring Epsilon will allow Publicis to be uniquely positioned to be the preferred partner of our clients in their transformation by delivering personalized experiences to clients at scale. As part of Publicis, we believe Epsilon will be able to take advantage of our breadth and strengths to drive improved growth. We are also excited about growing our relationship with Alliance Data’s other businesses,” Arthur Sadoun, Chairman, and CEO of Publicis Groupe said.