Publicis (PUBP.PA), the world's number three advertising group, has agreed to purchase U.S.-based Rosetta Marketing Group for at least $575 million, to boost its digital and interactive marketing service offerings. The French company's acquisition comes as the growing popularity of Internet video and social media is boosting web display advertising, while traditional advertising in newspapers and magazines is slowing. In addition to the initial transaction value, Rosetta's manager-shareholders could receive a potential deferred payment in 2014 based on the agency's performance between 2011 and 2013, Publicis said on Tuesday. Details about the future payment as well as synergies that Publicis, which competes with WPP (WPP.L) and Omnicom (OMC.N), expects from the deal are expected to be given at a conference call later today.
Omnicom Group Inc. (Omnicom) is a holding company, providing professional services to the clients through multiple agencies around the world. Shares of OMC remained unchanged at $47.41. In the past year, the shares have traded as low as $33.50 and as high as $51.25. On average, 2341270 shares of OMC exchange hands on a given day and today's volume is recorded at 0.
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