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Dentsu Inc. Reaches Agreement to Begin Acquisition Procedures for U.S. Integrated Marketing Company "MKTG"
Dentsu Inc. has agreed to commence acquisition procedures to acquire 100% of the shares of MKTG Inc. (official company name: MKTG Inc., hereinafter "MKTG"), a comprehensive marketing company with strengths in experiential marketing (marketing activities focused on consumers' brand experiences and experiential value), which is gaining significant customer interest in the U.S., the world's largest advertising market. This acquisition will be executed through Aegis Lifestyle, Inc., a U.S. subsidiary under Dentsu Inc.'s overseas headquarters, Dentsu Aegis Network. The board of directors of MKTG (formal name: MKTG Inc., hereinafter "MKTG") has unanimously approved the acquisition, and MKTG's management has agreed to continue participating in the company's management after the acquisition is completed.
MKTG's board of directors unanimously supports this acquisition, and the company's management team has agreed to continue participating in the company's management after the acquisition is completed.
As MKTG is a company listed on the U.S. OTC Bulletin Board market, procedures such as approval by the U.S. Securities and Exchange Commission and the company's shareholders' meeting are required. Therefore, it is anticipated that the acquisition will take two to three months to complete.
& Experiential marketing is a marketing approach that, unlike traditional advertising methods focused on achieving appropriate advertising exposure in terms of both quality and quantity to enhance brand awareness and favorability for products or services, aims to increase consumer engagement with the brand on both rational and emotional levels through marketing events where products or services can be experienced firsthand. This fosters positive word-of-mouth (buzz) and dissemination on social media, creating a virtuous cycle of communication.
Founded in 1992, MKTG has focused on this field since its inception and now executes approximately 70,000 experience-focused events annually. The company serves many globally renowned brands, providing comprehensive marketing services including experiential marketing, digital marketing, sales promotions, and strategic research. The Dentsu Group already operates numerous businesses in the United States. The acquisition of MKTG will serve as a catalyst to enhance the added value of services offered to clients and accelerate the Group's growth strategy in the U.S.
Carat, the Dentsu Group's media communications agency, announced in March 2014 that U.S. advertising spending grew 3.5% year-on-year in 2013. It forecasts stable growth of over 4% annually for both 2014 and 2015.
<Reference: Dentsu Group's Business Development in the U.S.>
The Dentsu Group's U.S. operations primarily consist of the integrated advertising agency Dentsu America, the creative agency mcgarrybowen, Attik, and Firstborn; media communications agencies Carat and Vizeum; digital agencies Isobar, iProspect, and 360i; OOH agency Posterscope; PR firm Mitchell Communications Group; sports marketing specialist Dentsu Sports America; and entertainment business specialist Dentsu Entertainment USA.
Dentsu Inc. News Release
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