Source: Reuters

Advertising giant Publicis Groupe said today that it would acquire Google's Performics search-engine marketing (SEM) division as it looks to beef up its digital operations.

Publicis, one of the world's largest ad agency holding companies, is looking to infuse its sizable portfolio of digital agencies with Performics' 150 SEM clients.

"Not only will this acquisition bring critical mass to Publicis Groupe's formidable search capabilities, but it will also enhance our affiliate marketing and overall performance marketing offering," Publicis CEO Maurice Levy said in a statement.

For Google (NASDAQ: GOOG), the move completes the dispersal of Performics, which it had absorbed through the acquisition of DoubleClick. At the same time, it also took on a potential conflict of interest with Performics's SEM division: search marketers get paid to improve their clients' page rankings in Google searches.

As a result, Google decided that SEM was incompatible with running an objective search engine. The Internet search leader had previously said that it planned to unload the division, noting that it had no interest in moving into that business line and sought to ensure objective search rankings.

The company also recently announced that it would fold the other division of Performics, an affiliate ad network, into its own advertising operations, putting it in competition with players like ValueClick and LinkShare.

Google spokespeople did not return request for comment by press time.

Publicis will fold the Performics business into what it calls the VivaKi Nerve Center, a group formed in June to pool the resources of the digital agencies Digitas, Starcom-MediaVest, Denuo and Zenith-Optimedia.

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The companies expect the transaction to close in the third quarter. Terms of the deal were not disclosed.