Publicis has agreed to buy 20 per cent of Israel-based digital advertising company Matomy Media Group for 227 pence per share, and has an option to purchase another 4.9 per cent.

Matomy’s shares closed at 238 pence on Friday, valuing Publicis’s 20 per cent stake at about £42.6 million.

As major companies shift more of their spending to online marketing, advertising agencies such as Publicis and its larger rivals WPP and Omnicom have been snapping up start-ups to gain technological know-how. The deal also shows how Publicis is seeking to boost growth after the failure in May of its mega-merger with Omnicom hurt second-quarter performance.

Matomy, which counts American Express and HSBC among its clients, specialises in so-called performance-based advertising. – (Reuters)