On May 6, Dentsu Inc.'s overseas headquarters, Dentsu Aegis Network, announced it had reached an agreement with shareholders of VeryStar, a leading Chinese mobile e-commerce marketing specialist company, to acquire a 60% stake. The agreement also grants the Dentsu Group an option to gradually increase its shareholding and make the company a wholly-owned subsidiary.
Founded in 2011, VeryStar not only plans and executes advertising communications utilizing digital media, including social media, but is also certified as a "Mobile Platform Design Agency" by China's major e-commerce platforms WeChat and Alipay. It develops application systems for mobile payments implemented by globally expanding retailers using these e-commerce platforms, as well as for issuing e-coupons as CRM measures for consumers and measuring their effectiveness. The services provided by the company have earned high praise from both the two major e-commerce companies and retailers. It anticipates further business expansion in the e-commerce domain, centered on mobile payments and e-coupons.
Following the acquisition, the Dentsu Group will integrate VeryStar into the Isobar network, one of its global network brands. Under the brand name "VeryStar - Linked by Isobar," the company will deepen collaboration with group companies, primarily Isobar China, to enhance synergies. This will strengthen its presence in the rapidly growing e-commerce sector within China, the world's second-largest advertising market, accelerating its growth strategy.
[VeryStar Company Overview]
Company Name: Shanghai VeryStar Internet Science and Technology Co., Ltd. (VeryStar)
Headquarters: Shanghai, China
Established: August 2011
Shareholder Structure: After Acquisition
Dentsu Inc. Aegis Network: 60%
Company Management: 40%
Revenue: 18.75 million Chinese yuan (approx. 310 million yen) (Fiscal year ended December 2015)
Representative:
Milan Jiang (CEO)
Jianhao Chen (CTO)
Number of Employees: 70
Business Activities: Provides mobile advertising communication utilizing digital media, mobile payment services, and e-coupon issuance services as CRM initiatives
Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2016/0506-008753.html
