ADS - Publicis: Epsilon Acquisition Benefits Outweigh The Risks
Investment Summary
Investors may consider investing in Publicis Groupe (PUBGY) (PGPEF) shares prior to finalizing their game-changing acquisition of Epsilon – a data marketing business – in 3Q 2019. Publicis will acquire the company from Alliance Data Systems (ADS) for a net consideration of $3.95 billion – which appears relatively inexpensive compared to past industry acquisitions.
The transaction is accretive from the get-go, leading to a 10% increment in net profit in FY 2020. More importantly, Publicis will have access to Epsilon’s proprietary database which would boost their current offering and fast track