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Dentsu Announces Acquisition by Dentsu Aegis Network of a Majority Stake in Certified E-Commerce Platform Design and Mobile E-Commerce Marketing Agency VeryStar in China

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  • International

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May 6, 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 acquired a 60% stake in leading mobile e-commerce marketing agency Shanghai VeryStar Internet Science and Technology Co., Ltd. (Head Office: Shanghai; hereinafter "VeryStar"), with an option in place that would allow expansion in steps to 100% at a later date.

Founded in 2011, VeryStar's capabilities include the planning and implementation of advertising and communications that utilize social and other digital media, the development of CRM applications for global brand retailers that enable them to issue electronic coupons and then measure their effectiveness, and the design of mobile payment platforms for leading e-commerce companies in China. VeryStar is a WeChat and Alipay certified mobile platform design agency, and its services are held in high regard by the two major e-commerce companies as well as retailers. The company's management expects to see an increase in business in the e-commerce domain, with its focus on mobile payments and e-coupons.

Post-acquisition, VeryStar will become part of Isobar , one of the Dentsu Group's nine global network brands*, and will be rebranded "VeryStar - Linked by Isobar." In collaboration with other Group agencies in China, the newly formed company will work to further increase the Group's presence in the rapidly growing e-commerce domain in China, the world's second largest advertising market, and to accelerate its growth strategy for the region.

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

*Dentsu Aegis Network Ltd., the Dentsu Group's global business headquarters based in London, is expanding the Group's business worldwide through nine global network brands--Carat, Dentsu (Dentsu Branded Agencies), Dentsu media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope and Vizeum--as well as through several specialist/multi-market brands.

Profile of VeryStar
Company Name:     Shanghai VeryStar Internet Science and Technology Co., Ltd.
Location:    Shanghai, China
Date of Establishment:    August 2011
Shareholding Ratio*:     Dentsu Aegis Network 60%
    VeryStar management 40%
    *After acquisition has been completed
Revenue:    CNY 18.75 million (year ended December 2015)
Representatives:     Milan Jiang (CEO)
                                   Jianhao Chen (CTO)
Number of Employees:     70
Line of Business:     Mobile advertising communications utilizing digital media,
mobile payments and CRM strategies such as e-coupons




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