Publicis Groupe to Acquire Rosetta, One of the Fastest Growing Digital Marketing Agencies in North America

Publicis Groupe to Acquire Rosetta, One of the Fastest Growing Digital Marketing Agencies in North America

Transaction Enhances Publicis Groupe’s Operations in Digital Advertising and Marketing

PR Newswire

PARIS, May 17, 2011 /PRNewswire-FirstCall/ — Publicis Groupe (EURONEXT
Paris: FR0000130577) announced today an agreement to acquire Rosetta
Marketing Group LLC that will significantly broaden its digital and
interactive marketing service offerings. Rosetta is one of the largest and
fastest-growing independent digital agencies in North America, and is
differentiated by its consulting and strategic services focus.

Rosetta will operate as an autonomous, stand-alone brand within Publicis
Groupe under the leadership of Rosetta’s founder & CEO Chris Kuenne, who will
remain at the head of the agency, reporting to Jean-Yves Naouri, Chief
Operating Officer of Publicis Groupe. The addition of Rosetta to its other
digital businesses – which include Digitas, Razorfish and Publicis Modem –
will bring Publicis Groupe’s annual revenue derived from digital activity to
more than 30%.

Maurice Levy, Chairman & CEO of Publicis Groupe, commented, “The
acquisition of Rosetta is a key next step in our strategy to become the
‘human, all digital agency group.’ We built VivaKi with the aim of
accelerating the shift of our clients to the future. With Digitas and
Razorfish we acquired fantastic talent, know-how and technology and
successfully integrated them into VivaKi and Publicis Groupe. With Rosetta,
we aim to enrich our digital knowledge, our capabilities in technology,
marketing consulting, and digital strategy, and the creativity we offer to
clients and advertisers. This is consistent with our commitment to anticipate
and meet their needs in the rapidly-evolving advertising and marketing
services landscape. Not only should we best serve our clients and attract new
ones, but we should also accelerate our transformation and grow faster.
Rosetta, with its differentiated consulting heritage and integrated approach,
adds to the fantastic stable of digital services we offer clients today.
Rosetta will broaden the scope and approach of our offerings to our existing
and prospective clients while initiating new approaches and bringing new
capabilities and technology to our portfolio.

“Rosetta’s value proposition is unique in that it combines its
savoir-faire in consulting and strategic services with its expertise in
technology and creative agency services. When we imagine leveraging Rosetta’s
strengths with those of the other networks within Publicis Groupe, we see
incredible synergies that will enhance our global position in today’s
transforming marketing space. I am pleased to welcome Chris Kuenne and his
team who are very strong leaders and innovators. Chris will join the
Strategic Leadership Team of Publicis Groupe.”

Launched in 1998 with a focus on consulting services , Rosetta employs
more than 1,100 interactive marketing professionals throughout the United
States
and Canada. It is headquartered in Princeton (New Jersey), with an
important presence in New York, Cleveland and California, with offices in San
Luis Obispo
, Los Angeles and San Jose. In 2010, Rosetta was the second
largest independent digital agency in the U.S. according to Advertising Age,
with 23.1% year-on-year growth. Rosetta’s clients are mainly in the
healthcare, financial, retail and technology industries, and include
Allergan, Blue Cross Blue Shield, Bristol Myers Squibb, Hewlett-Packard,
Johnson & Johnson, Marriott, Research In Motion, T-Mobile and Valvoline. It
was named the #1 Agency to Watch in 2011 by Advertising Age.

Rosetta provides personalized interactive marketing solutions to clients
using a unique approach, relying strongly on its strategic consulting
expertise, and integrating creative agency capabilities and technology
services. Rosetta’s client service teams work closely with C-Suite executives
to translate deep consumer insights into personalized interactive programs
that are scaled through Rosetta’s mastery of enterprise grade e-commerce
platforms, content management systems, connected devices and cloud computing.
Over the past 6 years Rosetta has grown from an agency of 40 professionals,
generating about $10M in annual revenue to a profitable agency which has
nearly 1,100 team members serving clients from 9 offices and with expected
revenues of nearly $250M in 2011.

Chris Kuenne, CEO & Founder of Rosetta, said, “We recognize that in order
to achieve our long term business and geographic growth potential, we need
the reach and resources of a global group, and we are particularly proud to
be joining one of the most advanced digital communications groups in the
world. We have found a culturally compatible, growth-oriented partner in
Publicis Groupe. We share highly complementary beliefs focused on empowering
good people to do great things and achieving marketing driven change and
transformation for clients.

Publicis has proven its commitment to respecting the heritage and value
of companies within its family. Publicis Groupe will nurture our growth in
terms of skills, investment and geographic coverage, foster our ability to
maintain our brand, and build our culture, allowing us to drive a broader
scale of impact for our clients.”

Jean-Yves Naouri, COO of Publicis Groupe, said, “The acquisition of
Rosetta further strengthens Publicis Groupe’s global position in the
important and evolving marketing area. Rosetta brings highly complementary
and additional assets and capabilities to those already offered by our
Digitas, Razorfish, and Publicis Modem digital agencies. We believe in the
importance of differentiating our offering through intellectual capital-based
value and Rosetta’s consulting centered digital offering is an excellent
opportunity to do so. I look forward to working with the Rosetta team to
maximize their potential opportunities and leveraging them to better serve
our outstanding client base.”

Under the terms of the agreement, in addition to the initial transaction
value of $575 million, Rosetta’s manager-shareholders can receive a potential
deferred payment in 2014 based on the agency’s performance in 2011 – 2013.
The initial transaction will be entirely paid in cash at the closing. This
acquisition is cons istent with Publicis Groupe’s target to increase its
revenue derived from digital (28% in 2010) to 35% over the next three years.
This transaction occurs as the most recent ZenithOptimedia forecasts (April
2011
) predict that the internet will overtake newspapers to become the
world’s second-largest advertising medium in 2013.

The transaction is expected to close during the second or third quarter
of 2011, and is subject to customary closing conditions, including clearance
under the United States Hart-Scott-Rodino Antitrust Improvements Act.

* * *

About Publicis Groupe

Publicis Groupe [listed on the Euronext Paris Exchange – FR0000130577 –
and part of the CAC 40 index] is the world’s third largest communications
group. With activities spanning 104 countries on five continents, Publicis
Groupe employs approximately 49,000 professionals and offers local and
international clients a complete range of advertising services through three
global networks: Leo Burnett, Publicis, Saatchi & Saatchi, and numerous
agencies including Fallon, 49%-owned Bartle Bogle Hegarty, and Kap lan Thaler
Group. VivaKi combines digital and media expertise, allowing clients to
connect with consumers in a holistic way, with Star com MediaVest Group and
ZenithOptimedia worldwide media networks; and interactive and digital marketi
ng led by Digitas and Razorfish networks. VivaKi develops new services,
tools, and next generation digital platforms. Publicis Groupe offers
healthcare communications with Publicis Healthcare Communications Group
(PHCG, the first global network in healthcare communications). And with
MSLGROUP, one of the world’s top five PR and Events networks, also provides
expertise in corporate and financial communications, public affairs,
branding, and social media marketing.

    Website: http://www.publicisgroupe.com
    Twitter: @PublicisGroupe
    Facebook: http://www.facebook.com/publicisgroupe

    Rosetta Headquarters
    100 American Metro Boulevard
    Hamilton, NJ 08619
    +1-609-689-6100

    Website: http://www.rosetta.com

    CONTACTS:
    Publicis Groupe
    Peggy Nahmany, Corporate Communication +33(0)1-44-43-72-83
    Martine Hue, Investor Relations +33(0)1-44-43-65-00

    Rosetta
    Kate Clegg
    +1-216-896-8961

SOURCE Publicis Groupe

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