IPG Group acquires Acxiom Corporation Marketing Solutions business
Acxiom's data analytics and management group will come under IPG's umbrella, however Acxiom will be a stand-alone division associated with IPG Mediabrands.
Interpublic Group of Companies (IPG) one of the largest advertising agencies in the world, has acquired Acxiom Corporation Marketing Solutions business. The acquisition is believed to be worth $2.3 billion and will place Acxiom's data analytics and management group under IPG's umbrella, alongside agency networks McCann Worldgroup, FCB and IPG Mediabrands, however Acxiom will be a stand-alone division associated with IPG Mediabrands.
The deal comes in wake of the Cambridge Analytica data leak scandal and the consequent scrutiny surrounding the use of consumer data in marketing campaigns, which led to Europe’s implementation of the General Data Protection Regulation (GDPR).
In a press release, Michael Roth, IPG's chairman and CEO, said, “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 personalised brand experiences across every consumer touch point".
In April this year, Acxiom went through a restructuring, dividing the marketing solutions business into a separate business unit. LiveRamp, the other unit, provides customer-data services for digital marketing applications. It will remain a part of Acxiom Corporation and will change its corporate name to LiveRamp following the sale.
According to the Ad Age Datacenter, Acxiom Corp.'s total worldwide revenue for year ended March 2018, including the portions it is not selling to IPG, was worth $917 million. IPG had $7.9 billion in global revenue for 2017, putting it $3 billion behind Publicis Groupe.
The Acxiom Marketing Solutions business which IPG will acquire consists of Acxiom's Marketing Services operation and lines of business from Acxiom's Audience Solutions operation. Acxiom's Marketing Services and Audience Solutions segments had worldwide revenue of $706 million in the year ended March 2018. Acxiom on Monday said LiveRamp had trailing 12-month revenue of $220 million.
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