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Dentsu Announces Agreement to Acquire a 100% Stake in, a Full-service Media Agency in Austria

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  • International

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May 11, 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., has reached an agreement to acquire a 100% stake in GmbH (Head Office: Vienna; CEO: Andreas Knie; hereinafter ""), an independent full-service media agency that is the largest in Austria, boasting the second largest transaction volume in that country. With this acquisition, the Dentsu Group will become the second largest advertising group in Austria. The completion of this acquisition is subject to regulatory approval.

With over 40 years of experience, has grown as a media agency providing full-services including consulting, research and data analysis related to communications strategy, advertising planning and buying for the traditional media (newspaper, magazine, radio and television), digital, OOH (outdoor and transit) and other media, and the verification of advertising efficacy as well as other services. As a full service agency with an impressive client portfolio, provides advertising services to both local and international clients.

In the worldwide advertising expenditure growth forecast announced in September 2016 by Carat, one of the Dentsu Group's global network brands*, the traditional media, including newspapers and television, accounted for 70% of the overall advertising market in Austria. However, in line with the rapid growth of digital advertising since 2014, digital is forecast to become the largest advertising segment in the next few years.

Following the acquisition, the company name will remain the same as we promote collaborations under the Dentsu Group. In particular, we will deepen cooperative relationships with Isobar and iProspect, brands that specialize in digital production, as well as Amplifi, which provides trading desk services delivering timely digital advertising to more accurate targets, heightening the synergy effects within the Group in Austria.

The impact of this transaction on Dentsu's consolidated financial results for the fiscal year ending December 31, 2017 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 ten global network brands--Carat, Dentsu (Dentsu Brand Agencies), Dentsu media, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscope and Vizeum--as well as through several specialist/multi-market brands.

Profile of GmbH
Company Name: GmbH
Headquarters Location: Vienna, Austria
Date of Establishment:    October 1974
              *Business commenced in 1975
Shareholding Ratio*:  Dentsu Aegis Network 100%
             *After acquisition has been completed.
Revenue:        GBP 10.2 million*
             * Fiscal year ended June 30, 2016
Representatives:     Andreas Knie, CEO
Number of Employees:  70
Line of Business:             Full‐service media agency



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