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Alliance Data to sell its Epsilon business to Publicis Groupe for $4.4 billion

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Christian Fernsby | Sunday April 14, 2019 8:13AM ET
Publicis Groupe
Acquisition   The transaction was unanimously approved by Alliance Data's Board

Alliance Data Systems Corporation announced it has entered into a definitive agreement to sell its Epsilon business to Publicis Groupe for $4.4 billion in cash, representing an approximate 10X trailing 12-month EBITDA (adjusted) multiple.


The transaction was unanimously approved by Alliance Data's Board of Directors and is expected to close in early Q3 2019, subject to satisfaction of customary closing conditions and receipt of regulatory approvals.

Net cash proceeds, after tax obligations and fees associated with the transaction, are expected to be $3.5 billion.

Alliance Data expects to use the full amount to repurchase shares and pay down corporate debt.

On a full-year run-rate basis, the transaction will be accretive to core EPS guidance of $22 and highly accretive on a GAAP basis.

 

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