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Acxiom To Sell Acxiom Marketing Solutions To Interpublic Group For $2.3 Bln

Acxiom (ACXM) said that it agreed to sell its Acxiom Marketing Solutions business to Interpublic Group (IPG) for $2.3 billion in cash.

The transaction was unanimously approved by Acxiom's Board of Directors and is expected to close by the end of calendar 2018.

Upon closing, the Company expects to realize approximately $1.7 billion in net cash proceeds, after taxes and fees. Consistent with its past capital allocation philosophy, Acxiom will continue its practice of executing a balanced approach to capital deployment. Specifically, the Company will continue to focus its capital on investing in growth opportunities and innovation, making strategic acquisitions and, at the same time, returning capital to shareholders.

Following the completion of the transaction, Acxiom intends to retire its existing $230 million debt balance, resulting in a debt-free balance sheet; initiate a $500 million cash tender offer for its common stock; increase its outstanding share repurchase authorization by up to $500 million, and extend the duration of the program to December 31, 2020.

Acxiom intends to use the remainder of the proceeds to fund its growth initiatives, strategic acquisition opportunities and meet its ongoing cash needs;

Acxiom plans to Transfer the Acxiom brand name and associated trademarks to IPG; and
rename the Company LiveRamp and, shortly thereafter, begin trading its common stock under the new ticker symbol "RAMP".

The Chief Executive Officer Scott Howe and Chief Financial officer Warren Jenson will remain in their current roles at the Company, which will be headquartered in San Francisco, California.

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