Microsoft to sell its digital marketing agency

The cash and stock deal is expected to be completed by the fourth quarter of 2009, subject to regulatory approvals. Both companies have inked an agreement under which Publicis Groupe would acquire Razorfish for about US$530 million, the French firm said in a statement on Sunday.

Further, the two entities have signed a Strategic Alliance Agreement that would be effective at the closing of the transaction. “The total consideration is expected to be paid in a combination of cash and delivery of 6.5 million Publicis Groupe treasury shares... The transaction is expected to close during the fourth quarter of 2009,” the statement noted.
“The agreement helps Publicis Groupe media clients by allowing their agencies to purchase display and search advertising from Microsoft over the five-year term of the agreement on favorable terms, in exchange for certain minimum guaranteed aggregate purchase levels,” it added.