Paris—Publicis Groupe announced an agreement to acquire online ad agency Digitas Inc. in a deal valued at $1.3 billion in cash.
"We have been seeking to make an important strategic acquisition which could really boost our presence in the digital marketplace,” said Maurice Levy, chairman-CEO of Publicis Groupe, in a statement. “The acquisition of Digitas Inc. allows us to immediately attain our goal of being one step closer to the future.”
Once the deal is complete, Digitas Chairman-CEO David Kenny will join the executive committee of Publicis and be put in charge of the interactive and digital strategy of Publicis Groupe.
Following the acquisition of Digitas, digital and interactive operations will represent approximately 15% of total revenue for Publicis Groupe.
The transaction has been approved by the boards of both companies.