Dentsu Inc. Agrees to Acquire 51% Stake in Sokrati, a Leading Indian Digital Agency with Strengths in Data Analysis and Performance Marketing

The text of the Dentsu Inc. news release distributed on July 27 is as follows.

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July 27, 2017

Dentsu Inc. Agrees to Acquire 51% Stake in Sokrati, a Leading Indian Digital Agency with Strengths in Data Analysis and Performance Marketing

Dentsu Aegis Network, the overseas headquarters of Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Toshihiro Yamamoto; Capital: ¥74,609.81 million), has reached an agreement with the shareholders of Sokrati Technologies Private Limited (Headquarters: Pune; Co-founder and CEO: Ashish Mehta, hereinafter "Sokrati"), and that the Dentsu Group holds an option to make it a wholly-owned subsidiary in the future.

Founded in 2009, Sokrati provides integrated digital marketing services based on advanced data analytics and CRM strategies derived from it. It has earned high acclaim in the Indian market, which boasts 400 million mobile users, particularly for its services in mobile advertising and e-commerce. The company has been ranked in Deloitte's "Top 50 Technology Companies in India" for four consecutive years (2013-2016) and has also received Google India's "Best Quality Accounts Award" multiple times.

The purpose of this acquisition is to expand our group's scale and capabilities in the local digital market by securing the Indian operations of our global network brand "Merkle" (headquartered in Maryland, USA).

network brand "Merkle" (headquartered in Maryland, USA) to expand our group's scale and capabilities in the local digital market. This acquisition will bring our group's total workforce in India to 3,500 employees, with approximately 1,500 (over 40%) being digital specialists.

Following the acquisition, we will integrate Sokrati into the Merkle network, rename the brand "Merkle|Sokrati," and accelerate our growth strategy in India through close collaboration with other Group companies.

The impact of this transaction on the Group's consolidated results for the fiscal year ending December 2017 is expected to be minimal.

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*Dentsu Inc. Aegis Network (London), which oversees Dentsu Inc.'s overseas operations, conducts business globally centered around 10 global network brands. These 10 brands are: Carat, Dentsu (Dentsu Brand Agencies), dentsu X, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscope, and Vizeum.

　
【Overview of Sokrati Technologies】
Company Name: Sokrati Technologies Private Limited (Sokrati)
Headquarters: Pune, India
Established: March 2009
Shareholder Structure: After share acquisition, Dentsu Inc. Aegis Network 51%
Revenue: INR 225 million (approx. ¥390 million) (Fiscal Year Ended March 2017)
Representatives: Ashish Mehta (Co-founder and CEO)
　Anubhav Sonthalia (Co-founder and Head of Enterprise Business)
Number of Employees: 138
Business Description: Provides integrated digital marketing services based on advanced data analytics and CRM strategies derived therefrom

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Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2017/0727-009336.html