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Dentsu Announces Agreement to Acquire Adexpres Group in the Czech Republic

  • Investor Relations
  • International

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March 9, 2016

Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) announced today that its global business headquarters Dentsu Aegis Network Ltd. has reached an agreement with the principal shareholders of s.r.o. (Head Office: Prague; hereinafter "Adexpres Group"), a leading independent group of digital agencies in the Czech Republic, to acquire the entity.

Founded in 2008, Adexpres Group provides a full range of services including the buying of ad space and strategic planning related to digital media. One of the fastest-growing digital agency groups in the Czech Republic, the group comprises digital media expert Adexpres, creative digital agency Bistro, social media specialist Bistro Social and app development studio Mobile Internet. The group's team of 90 specialists provides a wide range of services in the digital domain to a large number of local and global companies.

The rationale behind the acquisition of Adexpres Group is to strengthen the range of services provided by the Dentsu Group in the digital space, and to increase its competitive advantage not only in the Czech Republic but also across Central and Eastern Europe. Post-acquisition, the group will be merged into Dentsu Aegis Network Czech Republic & Slovakia.

In its September 2015 worldwide advertising expenditure forecasts, the Dentsu Group's media communications agency Carat announced that digital advertising expenditures in the Czech Republic grew 5% in 2014, with an increase of 7% forecast for both 2015 and 2016.

The impact of this transaction on Dentsu's consolidated financial results for the fiscal year ending December 31, 2016 is expected to be minimal.

A profile of Adexpres Group is provided on the following page.

Profile of Adexpres Group
Company Name: s.r.o. (Adexpres Group)
Location:    Prague, Czech Republic
Date of Establishment:    November 2008
Shareholding Ratio*:     Dentsu Aegis Network 100%
        *After acquisition has been completed
Revenue:    Approximately CZK 61,000,000 (year ended December 2014)
Representative:     Jan Galgonek (CEO)
Number of Employees:    90
Line of Business:     Full range of services in the digital domain




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