Tokyo, March 7, 2023 /PRNewswire/ — Dentsu Group Inc. [(Tokyo: 4324) (ISIN: JP3551520004; President & CEO: Hiroshi Igarashi; Head Office: Tokyo; Capital: 74,609.81 million yen] Dentsu announced today that it has entered into a definitive agreement with Advent International to acquire Tag Worldwide Holdings Ltd, a global omnichannel digital marketing production company. The acquisition supports Dentsu’s strategy of providing integrated client solutions that fuse marketing, technology and consulting, and unifies the Group’s service offerings like never before. Tag’s digital infrastructure and services deliver high-quality content for creatives at speed and scale, provide a large-scale personalization engine for customer experience management (CXM), as well as dynamic media Add power to content optimization (DCO). Upon completion of the acquisition, Dentsu’s Customer Transformation & Technology (CT&T) net sales will increase from 32% in fiscal 2022 to 34%. Dentsu has set “business transformation and growth” as one of the four pillars of its medium-term management plan, and one of its priorities is to achieve 50% of revenue from CT&T.
Tag works with leading brands to transform their business and marketing capabilities to deliver content across channels, cultures and geographies at speed and scale. Tag puts intelligent, sustainable and technology-driven solutions at the heart of everything it does, enabling brands to operate more efficiently and effectively, stand out, grow and reduce waste. The organization will be Dentsu’s sixth network brand and will maintain the Tag brand for the time being.
The acquisition significantly strengthens Dentsu’s creative digital production capabilities, adding 2,800 employees in 29 countries, one global production hub and 10 specialist hubs. Tag’s existing service portfolio includes creative production (including digital video, high-end CGI, video, AR/VR, post production), technology (UX design, website and platform development, managed services, and Digital Interact (Di) ) and Channel Activation (including strategic advisory and omnichannel content delivery).
Tag utilizes a robust global delivery model to provide clients with scalable solutions and around-the-clock coverage. This model closely reflects Dentsu’s unique Networked Talent structure, through which clients are provided with the highest level of expertise, networked anywhere, and consistently delivered at the highest level of quality available across Dentsu. provided as It is this combination of technology and people that optimizes delivery to clients across locations.
Founded in 1972, Tag was acquired by Advent International in 2017 and has grown significantly with an investment of over €100 million and 6 successful acquisitions further strengthening the capabilities of the business. Tag’s distributed hub model makes Tag an always-on, end-to-end production partner of choice for 38 of the world’s 100 leading brands, with an average customer tenure of over seven years. A key foundation of this success is helping marketers better manage their campaigns, access, automate and optimize their content, and seamlessly leverage Tag’s global creative production, sourcing and transcreation network. , Digital Interact (Di), a unified martech platform.
Hiroshi Igarashi, President and CEO of Dentsu Group Inc. -Provide horizontal creativity in the class.The values established and nurtured by the TAG leadership team over the past 50 years reflect Dentsu’s own shared focus on social purpose, DEI, and sustainability. It’s a great reflection of our culture and values.We look forward to welcoming you to the tag.For the success of the Dentsu family and us.”
David KaslerTag Global CEO said: Leveraging Dentsu’s extensive marketing, technology and consulting skills, technology-enabled content creation will be huge for both of our amazing clients. “
Opportunity for Clients
A powerful combination of global content delivery and personalization at scale:
The acquisition of Tag will significantly expand Dentsu’s content offerings to serve global brands across the entire customer journey in the most efficient manner possible. As the web becomes more immersive and the advent of Web3 creates an insatiable appetite for richer, more personalized cross-screen content, together dentsu and Tag are the perfect modern engine for content creation, delivery and personalization. provide.
Company structure
The tag continues to be a unique brand within Dentsu, David Kasleris the global CEO of Tag and the headquarters will continue to be LondonEngland.
Overview of trading terms
The transaction has been approved by the boards of directors of both companies and is expected to close in the second half of 2023, subject to receipt of required antitrust approvals and customary closing conditions. Lazard acted as financial advisor to Dentsu in connection with the transaction.
Dentsu expects the acquisition to deliver a number of economic benefits, including accelerated organic earnings growth, increased CT&T’s earnings profile and increased earnings per share. Upon completion, Tag will account for approximately 3% of Dentsu’s revenue, adding a long-term contract revenue stream.
About Dentsu
Dentsu is a network designed to help clients anticipate and plan for disruptive future opportunities and pave new paths for growth in a sustainable economy. We take a people-centric approach to business transformation, using insights to connect brands, content, commerce and experiences, fueled by modern creativity. As a member of Dentsu Group Inc. (Tokyo: 4324; ISIN: JP3551520004), headquarters location Tokyo Japan and a strong employee base of 69,000 dedicated professionals working in four regions (Japan, Americas, EMEA, APAC). Dentsu combines Japanese innovation with a diverse, global perspective to drive growth for our clients and shape society.
Dentsu website: https://www.dentsu.com/
Dentsu Group Inc. website: https://www.group.dentsu.com/en/
About tags
Tag works with brands to create and deliver impactful content at speed and scale. From creative production and activation, to strategic sourcing and delivery, analytics and subject matter expertise, across digital and physical touchpoints, brand content and concepts move globally and flexible technical response Allows you to connect locally through your solution.
https://www.tagww.com/
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors.The firm has invested in over 400 private equity investments in 41 countries and is currently September 30, 2022had $89 billion in assets under management. ADVENT has 14 offices in 12 countries and around the world he has established a globally integrated team of over 285 private equity investment professionals. North America, Europe, latin america and AsiaThe company focuses on investments in five core sectors including business and financial services. Healthcare; Industrial; Retail, Consumer, Leisure. and technology.
For more information, please visit www.adventinternational.com.
Disclaimer
Lazard & Co., Limited (“Lazard”) England acts solely as a financial advisor to Dentsu and is not responsible to anyone else in connection with the transaction, as per the Financial Conduct Authority. transactions or other matters referred to in this announcement. Neither Lazard nor its affiliates have any obligation (whether directly or indirectly, in contract, tort, statute or otherwise) to any person who is not a customer of Lazard in connection with this announcement. , assumes no liability or responsibility. , statements contained herein or otherwise.
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SOURCE Dentsu Group
