One of the hugest advertising agencies in the world, headquarters in Tokyo, Dentsu Inc. has bought Aegis marketing group for $5 billion; the reason of the latter was the desire of Japanese ad giant to expand outside its country’s market. It is the biggest deal in Dentsu’s history; the company has even paid a 48% premium to secure the absorption. The analyst Ian Whittaker said that the price is 20 times more than expected price earnings. This deal meant that now Japan is the 2nd most active overseas buyer after the USA in 2012, the worth of deal equals more than $20 billion; the US ranks first , while all major European companies and China acquisitions were left behind.
Dentsu Inc. has seen Aegis for a long time as a potential takeover target. Aegis Company has a rich client list among which are such giants as Disney, Coca-Cola, GM. The company was linked to the French group “Havas”, where Vincent Bollore, French financier, was the largest shareholder.
The premium 48% for deal was a proof of continuing long-term cooperation and growth for Aegis. Chief Executive Jerry Buhlmann thinks that the offered quality, the strong probability of deal confidence and the idea that it was a serious considerable approach mean that companies have entered bilateral discussions.
Last year Aegis entered the market, after selling their market research “Synovate” to be more focused on such quick-growing spheres as digital communications and media buying. In the same year Aegis increased the revenues for 35%.
The analyst Claudio Aspesi said that the fact of deal shows that advertising market represents significant value.
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