Boston, MA 11/07/2014 (wallstreetpr) – Sapient Corporation (NASDAQ:SAPE) agreed to be acquired by French advertising firm known as Publicis Groupe SA (ADR) (OTCMKTS:PUBGY). The deal is worth $3.7 billion, reflecting $25 for each share of Sapient. The per-share price indicates 44% premium on the closing price immediately before the deal was made public.
The acquisition of Sapient is expected to help Publicis boost its penetration into the U.S. market and more so into the digital advertising segment. Publicis has a target to generate half of its total revenue from the digital platform in the next few years. The acquisition of Sapient Corporation (NASDAQ:SAPE) is expected to shorten the digital revenue target period by three years.
Publicis attempted to acquire Omnicom Group Inc. (NYSE:OMC) earlier this year but failed because the companies could not agree on certain issues. It offered $35 billion to add Omnicom Group to its portfolio.
Sapient Corporation (NASDAQ:SAPE) generated 2013 Ebitda and revenue of $160.3 million and $1.31 billion, respectively.
Covance Inc. (NYSE:CVD) agreed to join the ranks of Laboratory Corp. of America Holdings (NYSE:LH) in which $6.1 billion will shift hands in its favor. Its shareholders will receive cash and stock for a total of $105.12 per share. The transaction price indicates a premium of nearly 32% over the closing price before the deal was made public.
What is important to note at this juncture is that the two companies are in unrelated businesses. Covance Inc. (NYSE:CVD) helps drug companies with clinical trials. Its customers include Sanofi SA (ADR) (NYSE:SNY) and Eli Lilly and Co (NYSE:LLY). On the other hand Laboratory Corp helps with the processing of patient samples and it serves hospitals and doctors.
The combined company is expected to have expanded revenue opportunities and diversified operations.
dELiA*s, Inc. (NASDAQ:DLIA)’s shares dropped 5%, its delisting from the NASDAQ Global Market was imminent. The company fell short of compliance requirements for continued listing on the market. It has been troubled in many ways as costs soar, sales shrink and stock price falls like a knife.
dELiA*s, Inc. (NASDAQ:DLIA) warned recently that it was facing cash shortage and was looking for a buyer. Its sales have been on a free fall, dropping by an average of 20% in the last four quarters.
