In a rare instance of a digital agency purchasing a traditional ad network, Sapient has struck a $50 million cash and stock deal to purchase Nitro Group. The merged company will be redubbed SapientNitro.
Nitro founder and CEO Chris Clarke will be CEO of the joint agency, while Sapient's Gaston Legorburu will serve as executive director-worldwide creative officer at Sapient Interactive and SapientNitro. Both he and Mr. Clark report into Alan Herrick, CEO of Sapient, a Nasdaq-listed company that also has offerings in the IT and professional services space.
At a time when so many in adland are still struggling to play catch-up when it comes to providing clients with best-in-class digital services, it might seem odd that an interactive network would buy a traditional advertising firm. But Mr. Legorburu -- who said he's been working on inking a deal with an above-the-line agency for nearly two years -- told Ad Age the merger will help Sapient in its quest to give advertising holding companies a run for their money.
The major holding companies, which include giants such as WPP and Omnicom Group, collectively control nearly 85% of global marketers' advertising spending, Mr. Legorburu said, but "they don't get it." Together, independents Sapient and Nitro Group can do multichannel marketing and commerce on a global scale, he said.
