The deal is final. Interpublic Group (IGP) has announced that it is acquiring the marketing solutions arms of Acxiom, the data, analytics, and identity management service, in a US $ 2.3 billion cash transaction.
This deal has completed the process of withdrawal of Acxiom from the data management and analytics space with the company already winding down its Australian marketing services and audience operations in 2016.
Since then, Acxiom has focused on identity management services after acquiring the customer onboarding service LiveRamp. Last year, it entered into a strategic data partnership with ‘Nine.’
The new deal will complement IGP’s inherent strengths in media, creative services, and consumer insights. As IGP will acquire the Acxiom brand name, they propose to rename the original company as LiveRamp.
The deal increases the staff strength of IGP as more than 2000 of Acxiom will move across to it.
Michael Roth, IPG’s Chairman and CEO sees the following developments as a result of the deal.
- Acxiom Marketing Solutions can help companies navigate the complexity of creating personalized brand experiences across every customer touchpoint.
- The combination of the two companies’ assets will help shape the future of this industry
- We acknowledge Acxiom’s leadership on data ethics. They have played a foundational role in the marketing ecosystem. Their analytical skills are second to none.
Scott Howe, CEO of Acxiom adds that the transaction can benefit both Acxiom and Acxiom Marketing Solutions (AMS) business unit.
AMS is an active business unit with tremendous expertise in data-driven marketing. It has talented associates and a client roster that includes the world’s leading companies. The sale of AMS to IPG can present the best possible path forward for their clients and associates.
The purchase price is a multiple of 11.5 times AMS’ 2018 estimated EBITDA after tax benefits. IGP proposes to fund the transaction through Acxiom’s shareholders through the debt capital markets.