The text of the Dentsu Inc. news release distributed on December 19 is as follows.
December 19, 2018
― Agreement Reached to Acquire 100% of Shares in Major Digital Marketing Company "DEG" ―
Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Toshihiro Yamamoto; Capital: ¥74,609.81 million) has reached an agreement with the shareholders of Digital Evolution Group LLC ("DEG"), a major U.S. digital marketing company (Headquarters: Kansas; CEO: Neal Sharma), to acquire 100% of its shares through its overseas headquarters, Dentsu Aegis Network (*) (Note).
Founded in 1999, DEG has grown as a comprehensive digital marketing company with strengths in strategy development, content creation, data utilization and analysis, and e-commerce services. Currently employing over 300 people, DEG is one of Salesforce.com's largest partners in the U.S. and collaborates with numerous leading platform companies. It provides comprehensive services that contribute to the development and operation of e-commerce platforms that enhance client brand experiences, as well as digital marketing.
The purpose of this acquisition is to expand the scale of operations and strengthen service capabilities in the United States for "Isobar" (headquartered in London, UK), one of our group's global network brands(※) with strengths in digital solutions that enhance customer experience. Going forward, the company will accelerate its growth strategy in the U.S. by rebranding DEG as "DEG, Linked by Isobar" and providing highly competitive digital marketing services.
The impact of this transaction on Dentsu's consolidated results for the fiscal year ending December 2018 is expected to be minimal.
*Dentsu Inc. Aegis Network (Headquarters: London, UK), 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.
【Overview of DEG】
Company Name: Digital Evolution Group LLC (DEG)
Headquarters: Overland Park, Kansas, USA (with additional offices in Denver, Pittsburgh, and Des Moines)
Established: September 1999
Shareholder Structure: 100% owned by Dentsu Inc. Aegis Network after share acquisition
Revenue: $45.82 million (approx. ¥5.17 billion) (Fiscal Year Ended December 2017)
Representative: Neal Sharma (CEO)
Number of Employees: 300
Business Description: Provides comprehensive digital marketing and technology-related services
End
Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2018/1219-009716.html
