IPG acquires information services arm of martech platform Acxiom in US$2.3bn deal
Interpublic Group today announced it will acquire the marketing solutions arm of data, analytics and identity management service Acxiom in a US$2.3bn cash transaction.
The deal bolsters IPG’s data offerings while completing Acxiom’s withdrawal from the data management and analytics space which saw the company wind down its Australian marketing services and audience solutions operations in 2016.
Michael Roth, IPG’s chairman and CEO: “Combining AMS with a range of IPG assets will help us shape the future of our industry”
Since closing its marketing services arm in Australia, the company has refocused around identity management services following its 2014 acquisition of customer onboarding service LiveRamp. Last year, Acxiom entered into strategic data partnership with Nine.
In the new deal, unanimously approved by both company’s boards, IPG said Acxiom Market Services would complement IPG’s strengths in media, creative services and consumer insights.
IPG will also acquire the Acxiom brand name while the original company will be renamed LiveRamp.
Over 2,000 of Acxiom’s staff will also move across to the 50,000 strong international marketing group.
“In a world where everything is becoming data-driven, Acxiom Marketing Solutions offers the deepest set of capabilities for helping companies navigate the complexity of creating personalised brand experiences across every consumer touchpoint,” said Michael Roth, IPG’s chairman and CEO.
“Combining AMS with a range of IPG assets will help us shape the future of our industry.
“Acxiom’s leadership on data ethics is second to none, its business is solid and growing, and it has long played a foundational role in the marketing ecosystem. The company also boasts 2,100 associates with data and analytics skills that are at a premium in business today.”
CEO of Acxiom Corporation, Scott Howe, added: “This transaction is a great outcome for both Acxiom and our Acxiom MarketingSolutions business unit.
Acxiom Marketing Solutions is a strong business with deep expertise in data-driven marketing, talented associates and a client roster that includes many of the world’s leading companies. After careful consideration of a variety of options and potential partners, it became clear that a sale of AMS to IPG, with its scale and breadth of complementary services, represented the best possible path forward for our clients and associates.”
The purchase price represents a multiple of 11.5x AMS’ 2018 estimated EBITDA (earnings before interest, tax, depreciation and amortisation) after tax benefits. IPG expects to fund the transaction, which is subject to approval by Acxiom’s shareholders, through the debt capital markets.
