Acxiom’s Arkansas operations sold in $2.3 billion deal
UPDATE: Acxiom says it expects little change for its team as it sells its Marketing Solutions business to Interpublic Group.
“We anticipate very little change," said Jerry Jones with Acxiom. "We don’t anticipate any significant changes to the Conway campus or the total number of people who will work for AMS. Similarly, we anticipate there will still be LiveRamp associates who continue to work in the central Arkansas area.”
Acxiom Marketing Solutions employs approximately 21,000 associates globally, including about 1,500 in central Arkansas.
ORIGINAL: LITTLE ROCK (TALK BUSINESS & POLITICS) -- After years of private speculation and months of public disclosure, the next chapter of Acxiom is ready to be written.
Interpublic Group of Cos., a global marketing and advertising agency, has entered into a definitive agreement to acquire the legacy business of Acxiom Corp. for $2.3 billion on Monday (July 2). The sold division includes Acxiom’s Marketing Solutions, which accounts for nearly three-fourths of the company’s revenue. Acxiom leaders announced in February 2018 that they were exploring strategic options for the division, which has traditionally provided direct mail and data services.
The transaction will be a net $2.0 billion deal after consideration of an acquisition-related benefit of the tax step-up, according to a company statement. The agreement has been approved unanimously by the boards of directors of both companies.
“In a world where everything is becoming data-driven, Acxiom Marketing Solutions offers the deepest set of capabilities for helping companies navigate the complexity of creating personalized brand experiences across every consumer touchpoint,” said Michael Roth, IPG’s Chairman and CEO. “Combining AMS with a range of IPG assets will help us shape the future of our industry. Acxiom’s leadership on data ethics is second to none, its business is solid and growing, and it has long played a foundational role in the marketing ecosystem. The company also boasts 2,100 associates with data and analytics skills that are at a premium in business today. Combined with IPG’s world-class client roster, as well as our talented 50,000-person global workforce across media, advertising and marketing services, and you have an unrivaled offering. Over the last year of working closely with AMS to power our AMP data platform, we’ve seen that our cultures are a great fit, and we’ve also seen that the combination creates value for our clients, as it will for our shareholders.”
“Everyone knows how valuable data is, but for most businesses it remains an under-leveraged asset. There also remains a great deal of uncertainty on how best to combine data with the creation and delivery of marketing messages. Our goal is to solve for those opportunities,” added Philippe Krakowsky, IPG’s Chief Strategy and Talent Officer and Chairman and CEO of IPG Mediabrands. “While marketing and information technology are increasingly converging within client organizations, service providers remain bifurcated. With the skills and capabilities that AMS brings to our portfolio of companies, we can offer clients end-to-end solutions that we believe will change the way in which we work for brands, and accelerate the onset of outcome-driven marketing.”
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