(AOF) – Publicis Groupe has announced the acquisition of Corra, an e-commerce specialist. Corra will be integrated into Publicis Sapient, the Publicis Groupe division specializing in digital business transformation, and will strengthen Publicis Sapient’s existing expertise in commerce solutions, including Adobe Commerce and MACH Alliance modular commerce solutions, while extending Publicis Sapient’s offer on digital and omnichannel commerce. Details of the transaction were not made public.
Founded in 2002 and headquartered in New York, with hubs in the US, UK and India, Corra leverages its offering to deliver some of the fastest and most flexible digital storefronts for retail brands. , food and beverage, technology, electronics, health and wellness, and B2B,” the communications group explains.
The Corra teams and its management composed of Ron Bongo (CEO), Michael Harvey (CTO) and Rachel Weir (President) will join the Commerce division of Publicis Sapient.
“With the acquisition of Corra, the Group is continuing its strategic investments to strengthen its leadership in the dynamic retail environment,” said Arthur Sadoun, Chairman of the Management Board of Publicis Groupe.
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Key points
– World number 3 in marketing, communication and digital business transformation, created in 1926;
– Revenue of €12.6 billion split between 4 “Solutions Hubs”: Publicis Communications (creative networks), Publicis Media, Publicis Sapient and Epison (digital and consulting, i.e. 1/3 of net revenue) and Publicis Health;
– Strong position in the Americas (63% of revenues), ahead of Europe (23%) and Asia-Pacific (9%);
– Business model broken down into 4 strengths – personalized solutions via data, creativity, large-scale targeting for media and proprietary digital channels – organized into a single platform of “Global Delivery Centers” and broken down by country with Marcel;
– Open capital (Elisabeth Badinter holding 6.74% of the capital and 12.36% of the voting rights), Maurice Lévy being chairman of the 12-member supervisory board, Elisabeth Badinter vice-chairman and Arthur Sadoun chairman of the management board;
– Healthy non-debted balance sheet with shareholders’ equity of €9.6 billion and free cash flow of €1.7 billion.
Challenges
– Waiting for a new strategic plan after the realization of “Sprint for the future”;
– Innovation strategy focused on:
– analysis of consumer behavior: mathematical and statistical solutions for media-planning, digital data management within MarketForward, organization of the annual Viva Technology forum, offer to customers of technological platforms, etc.,
– Marcel artificial intelligence platform for work reorganization;
– “Consume less and better” environmental strategy;
– Reinforcement of the digital transformation offer of customers via acquisitions of companies (Yieldify, Advertise BG, VIVNetworks, etc.);
– Continued big budget wins – world number one in new business – and strong demand for first-party data and digital-first media, driven by Epsilon and Sapient.
Challenges
– Sensitivity of sales and results to the parity of the euro (15% of revenues) against the dollar (52%) and the sterling (10%);
– After a 26% growth in 2022 results, 2023 objectives of a 3% to 5% increase in revenues and stability of the operating margin between 17.5% and 18%;
– 2022 dividend of €2.9, up 21%, and share buyback.
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