Publicis Groupe and Capgemini would be better off merged – analysts (translated)
24 NOV 2016
Shareholders in Publicis Groupe [EPA:PUB], the listed French advertising giant, and listed French IT services specialist Capgemini [EPA:CAP] would be better off after a tie-up between the two groups, French daily Le Figaro reported. The article referred to a report from analysts at Natixis, who claimed that the merger would create value for the shareholders, adding that opportunities of mergers between advertising groups are thin.
The analysts claim that the convergence between the marketing and IT industry is accelerating because of the digitalisation of business, noting that Publicis, via its digital unit Sapient, is already a competitor to Capgemini in numerous invitations to tender. They added that the two companies share a similar culture in terms of size and geographical presence, while they are complementary in the digital industry.