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Dentsu Announces Agreement to Acquire 89% Stake in SVG Media Group, a Leading Independent Digital Performance Media Services Corporate Group in India

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April 18, 2017

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., will acquire an 89% stake in the SVG Media Group, comprising SVG Media Pvt Ltd, DGM India Internet Marketing Pvt Ltd and Networkplay Media Pvt Ltd (Head Office: Gurgaon; Group CEO: Anurag Gupta; hereinafter "SVG Media Group"), one of India's largest independent digital performance media services corporate groups. Dentsu Aegis Network is currently Google's largest search partner in India and the addition of SVG Media will further strengthen the Group's leading search position in the market.

The agreement also gives the Dentsu Group the option to increase its share incrementally to make the SVG Media Group a wholly owned subsidiary.

With this acquisition, Dentsu aims to enhance synergistic effects through alliances with locally deployed SVG Media Group companies, accelerate growth strategies in the Indian market and establish a leading position in the digital domain in India.

Established in 2006, the SVG Media Group comprises three service brands (DGM, Komli, Seventynine) providing online performance marketing, mobile, social data targeting and content media services employing 280 people. The services provided by the SVG Media Group have an established reputation and are used by a number of leading companies representing India, as well as international clients in Dubai, Indonesia and China.

Following the acquisition, the SVG Media Group will be incorporated into the Asia Pacific digital marketing agency Columbus and become SVG Columbus. Columbus, headquartered in Australia, is one of the Dentsu Group's brands currently developing business in the digital domain.

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 SVG Media Group
Company Name:      SVG Media Pvt Ltd, DGM India Internet Marketing Pvt Ltd,
Networkplay Media Pvt Ltd
Headquarters Location:    Gurgaon, India
Date of Establishment:    May 2007*
* Business commenced in 2006.
Shareholding Ratio:     Dentsu Aegis Network 89%*
*After acquisition has been completed.
Revenue:    INR 680 million*
* Year ended March 31, 2016
Representatives:     Anurag Gupta (Group CEO)
Number of Employees:     Approx. 280
Line of Business:       Provision of digital performance media services




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