Dentsu Inc.'s overseas headquarters, Dentsu Aegis Network, has reached an agreement with shareholders of Brazilian integrated advertising agency NBS (officially PPR Profissionais de Publicidade Reunidos S/A, hereafter "PPR") to acquire a 70% stake in the company. The agreement also grants the Dentsu Group an option to expand its shareholding and make PPR a wholly-owned subsidiary in the future.
The acquisition is expected to be completed in 4 to 6 weeks, pending approval under competition law by the relevant Brazilian authorities.
Established in 2002, PPR operates as an advertising agency under the brand name "NBS." It excels in integrated advertising communication services and counts several major local companies among its clients. In 2013, it ranked 14th among full-service advertising agencies in Brazil by media business volume and was the largest independent advertising agency.
Until now, the Dentsu Group's client services in Brazil have been primarily provided through Dentsu Latin America (commonly known as Dentsu Brazil), a full-service advertising agency, alongside specialized agencies such as LOV Interactive Communications (LOV), a full-service digital agency covering specialized fields, and Isobar-affiliated agencies including AgênciaClick Isobar, AGE Isobar, and iProspect, which are part of the global digital network brand Isobar.
This acquisition strategy aims to further enhance the Dentsu Group's competitive advantage in Brazil's advertising and marketing sectors and accelerate its growth strategy. This is achieved by establishing a core functional base in Brazil, South America's largest and growing advertising market, ahead of the 2014 FIFA World Cup and the 2016 Rio de Janeiro Olympic and Paralympic Games.
According to Brazilian advertising expenditure figures released in March 2014 by Carat, the Dentsu Group's media communications agency, the market grew 7.1% year-on-year in 2013. Growth is projected to remain strong, with increases of 10.0% in 2014 and 8.1% in 2015.
Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2014/0501-003722.html
