The euro 2,392 million in provisional residual goodwill includes:
- employee know;
- the ability to
maintain and develop existing assets. Epsilon’s revenue since the
date of the acquisition has contributed euro 977 million to Groupe
consolidated net revenue for the 2019 financial year. The
contribution to net income attributable to equity holders of the
parent company for the 2019 financial year was euro 166 million.
Groupe revenue would have been euro 11,894 million and net income
attributable to equity holders of the parent company euro 868 million had the acquisition been finalized as of January 1, 2019.
The Epsilon acquisition costs were recognized under other operating
expenses and totaled euro 40 million at December 31, 2019 (see Note 4).
2.1.2 Other acquisitions
The other acquisitions during the period were not material (either individually or taken as a whole). The main ones were:
- in February 2019,
the acquisition of 100% of Soft computing (France);
- in August 2019,
the acquisition of 100% of Rauxa (United States). The fair value, at
the acquisition date, of the consideration paid (excluding cash and
cash equivalents acquired) for all consolidated entities taken as a
whole (notably including those detailed above, as well as smaller
acquisitions) with an exclusive takeover during the year, totaled
EURv ,245 million. This amount mainly includes:
- euro 4,076
million paid out during the period;
- euro 166 million
in earn-out payment commitments;
- euro 3 million in
commitments to buy-out non-controlling interests. The amount paid in
2019 for acquisitions (net of cash and cash equivalents acquired)
totaled euro 4,144 million and included:
- euro 4,076
million paid out during the period;
- euro -55 million
in net cash acquired;
- euro 123 million
in earn-out payments relating to prior acquisitions paid out during
the period. The acquisitions over the period, excluding Epsilon,
represented less than 2% of consolidated net revenue in fiscal year
2019 and less than 3% of net income attributable to equity holders
of the parent.
2.2 Acquisitions in 2018
There was no significant takeover (individually or taken together) during the period. The main acquisitions in the year were as follows:
- in July
2018, the Group acquired 100% of Payer Sciences (USA) and 100% of
One Digital (Brazil);
- in September
2018, the Group acquired 100% of Kindred (Czech Republic);
- in November 2018,
the Group acquired 100% of Xebia (France). The fair value, at the
acquisition date, of the consideration paid (excluding cash and cash
equivalents acquired) of all entities that were fully consolidated
(notably including the ones detailed above, as well as smaller
acquisitions) with an exclusive takeover during the period, totaled
euro 236 million. This amount mainly includes:
- euro 136 million
paid out during the period;
- euro 97 million
in earn-out payment commitments;
- euro 3 million in
commitments to buy-out non-controlling interests. The amount paid
out in 2018 for acquisitions (net of cash and cash equivalents
acquired) totaled euro 260 million and includes:
- euro 136 million
paid out during the period;
- euro -6 million
in acquired net cash and cash equivalents;
- euro 130 million
in earn-out payments paid out during the period. Taken as a whole,
all acquisitions made over the period represented less than 1% of
consolidated revenue and less than 1% of net income attributable to
equity holders of the parent company.
2.3 Disposals in 2019 and 2018
The Group completed the disposal of Relaxnews as of December 31, 2019, retaining a small 12.5% interest in Financière Relaxnews. The disposals of Publicis Health Solutions and the Proximedia operations were completed in first half 2019 (see Note 6).
The companies disposed of in 2019 contributed less than 0.4% to 2019 consolidated net revenue and 0.8% to 2019 net income attributable to equity holders of the parent. There was no major disposal in 2018. Companies sold contributed no more than 1% of
revenue and 1% of consolidated net income attributable to equity holders of the parent company in 2018.
