French advertising and public relations company Publicis Groupe is holding discussions to acquire U.S. loyalty and marketing services provider Alliance Data System’s Epsilon marketing unit.

The transaction is estimated to be valued at approximately $5 billion.

Epsilon is expected to bolster Publicis’ presence in the U.S., where it competes with Omnicom, Interpublic and WPP PLC.

Recently, Publicis bought French data marketing company Soft Computing.