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Dentsu Announces Acquisition of Videobeat, a Media and Content Agency in Germany

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December 17, 2018

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 70% share in Videobeat Networks GmbH (Head Office: Hamburg; CEO: Christoph Gaschler; hereinafter: Videobeat), a media and content agency in Germany, with an option of making it a wholly owned subsidiary in the future. The acquisition is subject to approval from the German competition authority.

Founded in 2011, Videobeat is a full-service agency for TV and online video campaigns. The agency, a leading expert for data-driven video advertising, has developed proprietary software to enhance the placement, management and analysis of video content across all platforms and optimized in real time. These core competencies are complemented by data-driven optimization and analysis tools to ensure a measurable ROI for each video campaign. In addition to the Hamburg headquarters, the agency has offices in Berlin, London, Paris and New York. Today 72 in-house experts offer a full suite of video marketing services to client companies.

Following the acquisition, Videobeat will remain a stand-alone brand and will share services and capabilities thereby expanding the Dentsu Group's business domain in Europe.

The impact of this transaction on Dentsu's consolidated financial results for the fiscal year ending December 31, 2018 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 X, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscope and Vizeum--as well as through several specialist/multi-market brands.

Profile of Videobeat
Company Name:   Videobeat Networks GmbH
Location (HQ office):   Hamburg, Germany
Date of Establishment:   December 2011
Shareholding Ratio*:   Dentsu Aegis Network 70%
                      *After acquisition has been completed
Revenue:   Euro 5.33 million (year ended December 2017)
Key Management Personnel:   Christoph Gaschler (CEO)
Number of Employees:   72
Line of Business:   Media and content agency




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