Dentsu Inc. Agrees to Acquire 100% of Danish Company Magnetics

The text of the Dentsu Inc. news release distributed on June 17 is as follows.

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June 17, 2016
Dentsu Inc.
Nao Ishii, President and CEO
(Tokyo Stock Exchange First Section, Securities Code: 4324)

Dentsu Inc. Reaches Agreement to Acquire 100% of Shares in Leading Danish Digital Agency Magnetics

Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Nao Ishii; Capital: ¥74,609.81 million) has reached an agreement with the shareholders of Magnetix A/S (Headquarters: Copenhagen, Denmark; Founder and CEO: Martin Bochineck; hereinafter "Magnetix"), a leading Danish digital agency, to acquire 100% of its shares.
The completion of this acquisition is subject to approval by the Danish regulatory authorities.

The purpose of this acquisition is to strengthen and expand the digital and CRM capabilities of Isobar, one of the Group's nine global network brands* and a digital agency. Upon completion of the acquisition, Isobar will become the No. 1 digital agency in the Nordic market (Denmark, Finland, Sweden, Norway).

Founded in 2000, Magnetics excels in technology insights and their rational application, providing clients with technology-driven solutions including data utilization, CRM program development, and e-commerce platform construction. Its services span the entire process, from strategy formulation to solution implementation and management.

The company serves a diverse portfolio of leading companies across multiple industries, ranging from major Danish brands to global brands. Its digital and direct marketing solutions are highly regarded, as evidenced by being ranked Denmark's top digital agency for successfully enhancing client brand power in both 2014 and 2015.

Following the acquisition, we will integrate Magnetix into the Isobar network. Under the new brand name Magnetix – Linked by Isobar, we will accelerate our growth strategy in the Nordic market by creating synergies through collaboration with group companies.

According to global advertising expenditure growth forecasts (March 2016) by Carat, our group's media communications agency, Denmark's digital advertising expenditure in 2015 increased by 11.0% year-on-year. Steady growth is projected to continue in 2016 and 2017, with increases of 10.5% and 9.0%, respectively.

The impact of this transaction on the consolidated results for the fiscal year ending December 2016 will be minimal.

Dentsu Inc. Aegis Network (London), which oversees Dentsu Inc. overseas operations, conducts business globally centered around nine global network brands. These nine brands are Carat, Dentsu (Dentsu Branded Agencies), Dentsu media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope, and Vizeum.

【Magnetix A/S Overview】
Company Name: Magnetix A/S
Headquarters: Copenhagen, Denmark
Established: July 2000
Shareholder Structure: 100% owned by Dentsu Inc. Aegis Network after share acquisition
Revenue: DKK 116.97 million (approx. ¥1.87 billion) (Fiscal Year Ending December 2015)
Representative:
Martin Bochineck (Founder and CEO)
Christina Rind Helsbro (COO)
Number of Employees: 130
Business Description: Provides comprehensive digital marketing services

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Dentsu Inc. News Release: http://www.dentsu.co.jp/news/release/2016/0617-008967.html