The text of the Dentsu Inc. news release distributed on October 17 is as follows.
October 17, 2017
Dentsu Inc. Reaches Agreement to Acquire Majority Stake in South African Creative Agency Fox P2
Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Toshihiro Yamamoto; Capital: ¥74,609,810,000) has reached an agreement with shareholders of FoxP2 Holdings Proprietary Limited (Headquarters: Cape Town, CEO: Charl Thom, hereinafter "FoxP2"), a leading South African creative agency, to acquire a majority stake in the company.
Founded in 2005 by four entrepreneurs, FoxP2 has succeeded by developing a business that integrates strategy, design, and digital, with a motto of delivering innovative results. It has grown into a full-service creative agency with 83 employees, including a branch in Johannesburg.
The company's strength lies in its creativity. In the UK's "The Gunn Report," which annually ranks advertising agencies based on their wins in major global advertising awards, Fox P2 was ranked second in South Africa in the 2016 rankings. Furthermore, in 2017, its work won international advertising awards including the UK's D&AD Awards and the US One Show, earning high praise from client companies.
Following the share acquisition, we will accelerate our growth strategy by enhancing synergies through collaboration between Fox P2 and our group companies operating in South Africa.
According to the 'Global Advertising Expenditure Growth Forecast' released by Dentsu Inc. Aegis Network in June this year, South Africa's advertising expenditure is projected to grow steadily in 2017 and 2018, increasing by 5.0% and 5.3% year-on-year, respectively.
The impact of this transaction on the Company's consolidated results for the fiscal year ending December 2017 will be minimal.
*Dentsu Inc. Aegis Network (London), which oversees Dentsu Inc.'s overseas operations, conducts business globally centered on 10 global network brands. These 10 brands are Carat, Dentsu (Dentsu Brand Agencies), dentsu X, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscope, and Vizeum.
【FoxP2 Holdings Overview】
Company Name: FoxP2 Holdings Proprietary Limited
Headquarters Location: Cape Town, South Africa
*Operational base in Johannesburg
Established: Business commenced in 2005; incorporated as a legal entity in October 2011
Shareholder Structure: After share acquisition, Dentsu Inc. Aegis Network: 52.05%
Company Management: 47.95%
Revenue: ZAR 61 million (approx. ¥510 million) (Fiscal year ended December 2016)
Representative: Charl Thom (CEO)
Number of Employees: 83
Business Description: Provides services across the entire creative spectrum
End
Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2017/1017-009382.html
