On Monday before the U.S. market opened, shares of LiveRamp Holdings, Inc. (RAMP.US) surged 26% to $37.30. This followed the announcement that Publicis Groupe S.A. (PUBGY.US) will acquire the data collaboration platform in an all-cash transaction valued at $2.5 billion. The deal is intended to significantly enhance Publicis Groupe's capabilities in data and artificial intelligence, aiming to help brands navigate an increasingly fragmented media landscape.

Under the terms of the agreement, Publicis Groupe will pay $38.50 per share for LiveRamp, representing a 29.8% premium over the company's closing price on May 15, the last trading day before the announcement.

In a statement released on Sunday, Publicis Groupe also revised its medium-term growth targets. The company now expects organic net revenue growth of 7%-8% for 2027 and 2028, up from a previous guidance of 6%-7%. Its target for core earnings per share growth was raised to 8%-10% from the prior range of 7%-9%.

Concurrent with the acquisition announcement, LiveRamp reported its full fiscal year revenue, which reached $813 million, marking a 9% increase year-over-year. Under U.S. Generally Accepted Accounting Principles (GAAP), its operating profit rose to $83 million from $5 million the previous year.

The company noted that by the end of the fiscal year, it had 133 customers with annual subscription revenue exceeding $1 million, compared to 128 in the prior year. The subscription net revenue retention rate stood at 107%.

LiveRamp stated that due to the pending acquisition, it will not be providing financial guidance and has canceled its previously scheduled earnings conference call.