Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Toshihiro Yamamoto; 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 the largest independent full-service advertising agency in Indonesia Dwi Sapta Group (Head Office: Jakarta; CEO & Founder: Aloysius Adji Watono; hereinafter "Dwi Sapta Group") to acquire a 51% stake in the company with an option of making it a wholly owned subsidiary in the future. The deal is anticipated to close in H1 2017.
Indonesia, the 16th largest economy in the world, is a promising advertising market that is the largest in Southeast Asia. With this acquisition, Dentsu will further expand the scale of its business in Indonesia with the aim of strengthening its position in the market.
Founded in 1981, the Dwi Sapta Group at present encompasses nine companies specializing in creative, media, digital, PR and other areas with a total of 400 employees, having grown to become Indonesia's largest independent full-service advertising agency. Ranking among the top global agencies in terms of media services, the Dwi Sapta Group boasts the fourth leading position, offering advertising services to approximately 150 clients from among leading companies in Indonesia.
Following the acquisition, Dentsu will engage in business alliances and integration between Dwi Sapta Group companies and Dentsu Group companies deployed in Indonesia to enhance synergies and accelerate growth strategies in Indonesia.
The impact of this transaction on Dentsu's consolidated financial results for the fiscal year ending December 31, 2017 is expected to be minimal.
Profile of Dwi Sapta Group
Company Name: PT Dwi Sapta Pratama, PT Cipta Pratama Kreasi and PT Komunika Pratama Kreasi (DBA: Dwi Sapta Group)
Headquarters Location: Jakarta, Indonesia
Date of Establishment: May 1981
Shareholding Ratio*: Dentsu Aegis Network 51%
*After acquisition has been completed
Revenue*: IDR 106.3 billion
* Year ended December 31, 2015
Representatives: Aloysium Adji Watono（CEO & Founder）
Maya Carolina Watono (Managing Director)
Number of Employees: Approx. 400
Line of Business: Provider of full-services in the advertising domain
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