A commando operation in full summer torpor

A commando operation in full summer torpor. A week after entered into exclusive negotiations with Microsoft, the French group Publicis announced yesterday an agreement for acquisition of Razorfish, his specialized in digital communications agency. Created in 1995, Razorfish is present in eight countries and carries out three quarters of its activity in the United States, his country of origin. The company is mainly active in the development on Internet (implementation of sites, including sites of commerce online...) and communication (advertising campaigns on the Internet). She also specializes in the marketing of social networks. Acquired by aQuantive in 2004, Razorfish was himself under the banner of Microsoft in 2007 when the latter had himself bought aQuantive. Since then, speculation about a sale of Razorfish had not ceased, Microsoft had not vocation to remain in the field of communication-marketing. As soon as Microsoft took the decision to initiate the sales process, everything went very quickly since, in a little over a month, the operation was concluded. All major global communication groups stepped candidates, Omnicom and Interpublic passing through Britain's WPP Americans and Japanese Dentsu.

Stronger in the digital

Two and a half years after the acquisition of Digitas, this operation allows Publicis to strengthen even more trades digital, at the time where the advertising crisis affects all media. Digital no is not spared, more familiar with the rate of growth of recent years. In 2008, Razorfish made a gross margin of approximately $ 380 million, and its profitability reached 10. Its activity should stagnate this year, due to the crisis. "Razorfish out remarkably well from the crisis because the market is down 15, but they did not have the synergies which benefited Digitas.". "We will reinvigorate its growth", says Maurice Lévy, Chairman of the Executive Board of the French group. This acquisition also helps Publicis to achieve its objective to achieve a quarter of its business in the digital, after 20 in the first half of 2009, and to claim the position of world leader with a year in advance, communication and Internet marketing agencies. Razorfish, which will be always led by Bob Lord, will remain an independent network alongside Digitas, both companies being capped by Vivaki, structure created a year ago by Publicis. The French subsidiary of Razorfish, Duke, will also remain an independent company.

Strategic partnership

The amount of the transaction $ 530 million (approximately EUR 370 million) and will be funded for about half cash, half stock Publicis. First result, Microsoft will become one of the first shareholders of Publicis, still far behind Japanese Dentsu and the heirs of the founder, Marcel Bleustein-Blanchet, but with a still significant share of 3 of the capital. "The will of Microsoft's long stay in the capital of Publicis", added the President of Publicis. Since the acquisition of Razorfish double of the signature of a strategic partnership between Microsoft and Publicis. For five years, the two groups will cooperate closely: Publicis will commit to a certain volume of purchases on the sites of Microsoft, and, in return, Razorfish will remain Microsoft Internet reference agency. Maurice Lévy, it is the agreement which tipped the balance in favour of the French group, while Japanese Dentsu had proposed a much higher sum (approximately $ 650 million) to buy Razorfish. An agreement very engaging for Publicis, since he is betting on the success of Microsoft, and including Bing, its new search engine sites. And, while the Redmond Group more than ever on the success of Bing and the alliance that he had just announced with Yahoo! to counter Google omnipotence in the field of research on the canvas.