Aegis concludes sale of Synovate to Ipsos for US$857.5m

Ipsos and Aegis had been in exclusive talks since the end of June. The sale will be finalised subject to shareholder approval and anti-trust clearances.

The swift conclusion of the deal, despite the late bids of private equity firms, was in the interest of both parties sources have told Campaign. 

"“This deal will meet our goals to make Ipsos brand a worldwide brand, synonymous with excellence in each of its fields of specialisation and better able to attract and keep clients," said Didier Truchot, chairman and CEO of Ipsos SA in a statement.

Sources also said that the exclusion of Aztec from the deal, which is a self-sustaining highly profitable business, made Synovate an even easier target to acquire.

The board of directors of Aegis intends to return US$327 million of the proceeds of the sale to shareholders by means of a special dividend and an associated 10 for 11 consolidation of Aegis ordinary shares - subject to approval of Aegis shareholders.

The balance of the proceeds will be used to provide increased financial flexibility for to pursue acquisition opportunities focusing on faster-growing regions and digital businesses. As Sources have pointed out, until Aegis made a move to grow by acquisition, it could be a prime takeover target itself. London papers the Daily Mail and the Independent have identified WPP and Publicis as two potentially interested parties.

Jerry Buhlmann, CEO of Aegis Group plc, said the sale represents the largest structural change in the history of the group but would provide value for shareholders and allow the group to focus on media, digital and content creation.

“Aegis Media’s strategy is based on capturing organic growth from the rapidly changing media market. The outcome of this transaction will enable us to accelerate the delivery of that strategy and focus our resources on value enhancing acquisitions to support us in driving sustainable profitable growth," said Bulhmann.