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Acxiom Corp. Conway announced, after the market closes on Monday, that it would sell its largest business sector to Interpublic Group of Companies Inc., a publicly traded company in New York, as part of the US market. a $ 2.3 billion transaction.
Acxiom Marketing Solutions, provided about three quarters of the 2018 business year revenue. It includes data management services, data strategy services, badytics, and "audience creation services." Interpublic said the AMS business affects about 2,100 employees and 2,000 customers [19659002] Acxiom stock (Nasdaq: ACXM), which closed at $ 29.95 on Friday, closed up more than 14% on Monday at $ 34.21. Trading after opening hours has brought it down to $ 40, a level that it had not known since 2000.
The sale, closed before the end of the year. 39, year and approved by both boards of directors, is the culmination of a process. announced last February the restructuring of its business units, from three segments to two: Acxiom Marketing Solutions and LiveRamp. Acxiom then stated that she intended to explore options for AMS, including a sale or spin-off.
The sale lets Acxiom focus entirely on LiveRamp activity "data onboarding". Acxiom bought LiveRamp from San Francisco in May 2014 for $ 310 million
The sale will also leave Arkansas with one less company: Acxiom said it will transfer the Acxiom brand and related brands to Interpublic, to rename LiveRamp and move its headquarters to San Francisco. It aims to trade ordinary shares under the new symbol, RAMP.
"This transaction is an excellent result for both Acxiom and our AMS business unit," said CEO Scott Howe in a press release. "Acxiom Marketing Solutions is a solid company with deep expertise in data-driven marketing, talented badociates and an exceptional list of clients."
"After careful consideration of various options and potential partners, it became clear that a sale of AMS to IPG, with its wide range of complementary services, represented the best possible route for our customers and badociates. "
Michael Roth, CEO of Interpublic, said that this acquisition" will help us shape the future of our industry. "
" Acxiom's Leadership in Business Data ethics is unmatched, its business is strong and growing, and it has long played a fundamental role in the ecosystem of marketing, "Roth said. skills that are at a premium in business today. Combined with the list of IPG's world-clbad customers, as well as our talented global staff of 50,000 people in the media, advertising and marketing services, you have an unparalleled offering. "
Interpublic states that AMS will remain an autonomous division Arun Kumar, its director of data and marketing technologies Acxiom executives Dennis Self and Rick Erwin will remain co-presidents of AMS [19659002] Interpublic said that AMS will account for 8% of the combined company 's revenue According to Acxiom' s financial director Warren Jenson, AMS has achieved a turnover of about 700 Millions of dollars in 2018. Acxiom's total business figure was $ 917 million.
Acxiom's other LiveRamp activities allow merchants to connect to offline data. Relationship Management Systems – with online data, which allows them to better target advertising on these customers LiveRamp includes the former Connectivity segment of Acxiom and its products IdentityLinkT TV integrations, of AbiliTec and Acxiom
During the conf telephone ence of February, the CEO & # 39; Acxiom, Scott Howe, said customers LiveRamp included some of the largest banks, companies & # 39; insurance, telecommunications companies, retailers and airlines. it's been intensified in recent days. On Thursday, the Wall Street Journal reported that companies had until the end of the day to submit bids for the unit, and that Tokyo Interpublic and Dentsu Inc. needed to be among the bidders . On Monday, Reuters reported that the Interpublic Group would be the likely buyer.
In his press release, Acxiom stated that it would achieve about $ 1.7 billion in net cash after the close of the transaction. He said that he would use the money to repay all $ 230 million of his debt; launch a cash tender offer of $ 500 million for common shares; and increase a stock repurchase program by $ 500 million and extend it until the end of 2020.
The company said it would use the rest of the money to fund growth initiatives, strategic acquisition opportunities and ongoing liquidity needs.
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