Publicis Groupe buys Microsoft’s Razorfish

Microsoft is selling its interactive advertising agency, Razorfish, to Publicis Groupe in a cash and shares deal worth $530 million (£317 million).

Razorfish will continue to operate under its brand name and will become part of VivaKi, the new Publicis Groupe entity created in June 2008.

Razorfish’s management team, led by CEO Bob Lord, will remain unchanged.

Maurice Levy, chairman and CEO of Publicis Groupe, said: “The acquisition of Razorfish is another step forward in realizing our strategic vision of building a world leader in digital communications, a critically important space for our clients.

“More than anything, this acquisition should demonstrate that Publicis Groupe now presents a wider pool of resources, talent, and expertise that will help our clients market their products or services in a way that takes maximum advantage of the new digital world.

“Our capabilities will be further enhanced by the great talent throughout Razorfish, and we are happy to welcome this new addition to our family.”