SAN FRANCISCO (TheStreet) – Sapient (SAPE) shot up more than 40% on Monday, after Publicis Groupe announced it planned to acquire the large Boston-based digital advertising firm for $3.7 billion in cash. Alibaba Group (BABA) and Sprint (S) , meanwhile, also rose during the session ahead of their earnings announcements.
Sapient rose42% to close at $24.60, after Publicis said it would purchase the company for $25 a share. In the past month, Sapient's stock had been trading around $14 a share, near its 52-week low of $12.85.
Must Read: 12 Stocks Warren Buffett Loves in 2014
In making a play for Sapient, the Paris-based Publicis Groupe is aiming to bolster its digital advertising capabilities, a move it was hoping to make when it tried to acquire Omnicom Group (OMC) in a $35 billion merger earlier this year. That Publicis-Omnicom deal, however, imploded in May.
The deal, of course, is subject to shareholder and regulatory approvals. Publicis investors apparently aren't huge fans of the Sapient acquisition, even though it carries a cheaper price tag than Omnicom.
Alibaba Group closed up 3.3% to $101.80.
The Chinese ecommerce behemoth is expected to report its third quarter results before the markets open Tuesday, with Wall Street expecting to see earnings of 36 cents a share on revenue of $2.7 billion.