New York, July 12 (FinanceEnquiry.com) – Dentsu Inc, the Japanese advertising giant is buying the British media and marketing communications group, Aegis for 3.2 billion pounds ($5 billion).
This marks the biggest deal in its history and will enable Dentsu to excel beyond domestic markets with Aegis’ European and digital business.
Dentsu will pay 240 pence for each Aegis share, a 48 percent premium to the closing price yesterday, sending shares in the target group up 45 percent to 235 pence.
Though the company dominates traditional Japanese print and broadcasting sectors, overall ad industry revenue fell 2.3 percent to 5.7 trillion yen ($72 billion) in 2011 because of deteriorating growth in the home market.
This deal will turn Dentsu and Aegis into the market leaders in the Asia-Pacific region, enjoying a strong presence across Europe and the fastest growing agency network in the US.
Lead by Jerry Buhlmann and his team, Aegis has maintained a strong foothold in professional world as the most successful independent media and digital communications agency with strong performance momentum and talented, client-focused employees.
Buhlmann exclaimed that Aegis is pleased on joining Dentsu and look forward to help it in creating a platform for global growth and continued digital innovation.
Dentsu said it had already purchased or had irrevocable undertakings in relation to around 30 percent of Aegis’ stock, including shares from Bollore, the French financier who is Aegis’s largest shareholder. The Bollore group confirmed that it had agreed to sell its 26.4 percent stake to Dentsu for 240 pence a share.
The deal comes months after Dentsu separated from Publicis ending its nine-year alliance, which is Aegis’s European rival. The French company bought back a 9.1 percent stake held by Dentsu in February, leaving the Japanese group with the firepower to strike another deal in Europe, analysts said.
This new communication group with enhanced global reach and combined growth strategies of both the businesses, will work to provide more scale, geography, capability and investment to support clients.
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