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Software giant Microsoft will sell its digital marketing agency, Razorfish, to French advertising major Publicis Groupe SA for an estimated $530 million.
The cash and stock deal is expected to be completed by the fourth quarter of 2009, subject to regulatory approvals.
Both companies have inked an agreement under which Publicis Groupe would acquire Microsoft's Razorfish for about $530 million, the French firm said in a statement on Sunday.
Further, the two entities have signed a Strategic Alliance Agreement that would be effective at the closing of the transaction.
"The total consideration is expected to be paid in a combination of cash and delivery of 6.5 million Publicis Groupe treasury sharesÂ…The transaction is expected to close during the fourth quarter of 2009," the statement noted.
Major clients of Razorfish include Ford, McDonald's and Starwood Hotels. Meanwhile, the Strategic Alliance Agreement would expand the cooperation pact announced by the two firms in June.