Japan’s leading advertising group, Dentsu, has announced the completion of its acquisition of the Aegis Group. Renamed the Dentsu Aegis Network, the company is heralded as the “first truly global communications company”. All the network companies that comprised the former Aegis Group (Carat, iProspect, Isobar, Posterscope, Vizeum and Aztec) will continue their operations within the Dentsu Group under the Aegis Media banner.
“We are delighted that this transformative deal has been completed,” said Dentsu President & CEO Tadashi Ishii. “The addition of Aegis represents a massive step toward realising our vision of a client-centric, collaborative global network of the best-in-class brand, digital and media agencies. We look forward to the value this will add to our clients’ businesses, wherever they may be, and look forward to growing with them as their partner of choice.”
The expanded Dentsu Group now has a presence in 110* countries, and employs more than 36 000 professionals across the globe. It will also be number one in the Asia Pacific region, the fastest growing agency group in North America, a truly scaled operator in Europe and, as of now, the only global network built in and for the digital age.
Dentsu also announced the creation of the Dentsu Aegis Network Ltd., a new global operating unit headquartered in London, to oversee the operations of the Dentsu Network, which manages all of Dentsu’s global business operations outside of Japan, and Aegis Media’s operations worldwide. The Dentsu Network and Aegis Media will continue to operate as separate entities but they will be governed by the Dentsu Aegis Network Management Team and Board of Directors.
Tim Andree, Dentsu Inc. senior vice president and Dentsu Network CEO, has been appointed executive chairman of the Dentsu Aegis Network, and Jerry Buhlmann, who remains as CEO of Aegis Media, has been appointed CEO of the Dentsu Aegis Network. The board of the Dentsu Aegis Network is made up of key executives from Dentsu and Aegis: Tadashi Ishii, Shoichi Nakamoto, Tim Andree, Kuni Matsushima and Nicholas Rey from Dentsu, and Jerry Buhlmann, Nigel Morris, Nick Waters, Nick Priday and Valerie Scoular from Aegis.
“I am very happy to welcome Jerry Buhlmann, the executive team, and all the employees of Aegis Media worldwide to Dentsu,” said Tim Andree, executive chairman of the Dentsu Aegis Network. “This is called the ‘closing’ of the deal but it really is the beginning. Our complementary geographic and product portfolios, as well as the strong positive chemistry that is rooted in our shared values, can only result in more and better ways to collaborate and serve our respective clients and their businesses around the world.”
Aegis Media and Dentsu Aegis Network CEO Jerry Buhlmann added, “In joining forces with Dentsu, Japan’s leading advertising group, we have created the world’s first truly global communications network with the ability to deliver integrated and specialist services that add real value to our clients’ businesses, in a transforming market. We are looking forward to working with our new colleagues at Dentsu.”
The Dentsu Group has formulated an action plan that will lead to an enhanced revenue structure and competitive advantage through the synergies derived from integrated product offerings and collaborative business development. The group will continue to invest in its business and make acquisitions that will drive further growth.
With regard to Dentsu’s consolidated financial results, the impact of the transaction will be reflected in the consolidated balance sheet starting from the end of the fiscal year ending March 2013 and in the consolidated statement of income starting from the first quarter of the fiscal year ending March 2014. In order to enhance international comparability, Dentsu is considering the voluntary adoption of international financial reporting standards (IFRS) for the fiscal year ending March 2015.
Image:Dentsu President & CEO Tadashi Ishii