Dentsu Inc.'s overseas headquarters, Dentsu Aegis Network, has agreed to acquire the agency division of U.S. integrated digital agency Covario, Inc. from its shareholders. Covario has an agency division providing integrated digital services and a software division developing analytics tools; this acquisition targets the agency division.
Founded in 2006, Covario is a full-service digital agency. Its agency division is particularly well-regarded in SEM (Search Engine Marketing), social media, content marketing (delivering valuable, relevant content or entertainment to customers at the right time). It was named Search Agency of the Year by the U.S. Online Media Marketing and Advertising (OMMA) for three consecutive years from 2011 to 2013. The company also serves a large number of multinational clients.
Following the acquisition, Covario will operate as the U.S. base (currently with offices in Boston, New York, Chicago, Detroit, San Francisco, and Fort Worth) of iProspect, the Group's digital performance marketing agency operating in 40 countries worldwide. It will also enhance collaboration with Group companies on the West Coast, where Covario is headquartered, to improve services for clients.
According to global advertising expenditure growth forecasts by Carat, the Dentsu Group's media communications agency, U.S. digital advertising expenditure grew 14.0% year-on-year in 2013. Growth is projected to reach 16-17% in both 2014 and 2015, exceeding the overall U.S. advertising market growth rate (just under 5%).
[Covario, Inc. Overview]
Company Name: Covario, Inc.
Headquarters: San Diego, California, USA
(With offices in San Francisco, Seattle, Phoenix, Chicago, New York, Toronto, London, Beijing, Singapore, São Paulo, and Tokyo)
Established: March 2006
Shareholder Structure: Dentsu Inc. Aegis Network 100% (post-acquisition)
Gross Profit: Approximately $33.1 million (approximately ¥3.44 billion) (Fiscal Year Ended December 2013)
Representatives: Michael Gullaksen, Jeff Johnson (Co-CEOs)
Number of Employees: 140
Business Description: Comprehensive digital services centered on SEM
Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2014/0918-003824.html
