Dentsu Announces Agreement to Acquire Data Marketing Company Navegg in Brazil

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January 12, 2016

Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) announced today that its global business headquarters Dentsu Aegis Network Ltd. has reached an agreement with the principal shareholders of online audience data supplier NVG Participações S.A. (Head Office: Curitiba; hereinafter "Navegg") to acquire the company. The objective of the acquisition is to strengthen and expand the Dentsu Group's digital services offering in Brazil, the largest market in Latin America.

Founded in 2009, Navegg manages and operates data management platforms which provide online audience data. The company's greatest strength is its strong relationships with publishers and websites that enable it to store and analyze more than 10 billion audience data events every month. Partnering with more than 100,000 sites, including blogs, portal, price comparison and e-commerce sites, Navegg is one of the largest DMP providers in Brazil, and supports the marketing activities of publishers and enterprises. The company also provides data-strategy consulting services that analyze and utilize this data in the customer relationship management (CRM) domain. Navegg's clients include Brazil's leading online publishers as well as platform companies that utilize performance-based advertising across North and Latin America.

To date, the Dentsu Group has provided a wide range of services to its clients in Brazil through its full-service advertising agencies NBS (acquired in May 2014) and Dentsu Latin America (commonly known as Dentsu Brazil), creative agency mcgarrybowen, digital marketing agencies LOV Interactive Communications and Redirect Digital Marketing (acquired in July 2015), mobile marketing agency Pontomobi (acquired in October 2015) and out-of-home agency OOH Plus (acquired in December 2014), as well as through global digital performance agency iProspect and global digital marketing agency Isobar, two of the Group's nine global network brands

Following the acquisition, Navegg will collaborate with the Group's performance-based advertising trading desk Amnet and other Group companies to create synergies in Brazil and other markets in Latin America.

In its September 2015 worldwide advertising expenditure forecasts, the Group's media communications agency Carat announced that advertising expenditures in Brazil grew 20.0% in 2014 and are expected to continue to rise 10.0% in 2015 and 9.0% in 2016.

The impact of this transaction on Dentsu's consolidated financial results for the fiscal year ending December 31, 2016 is expected to be minimal.

Profile of Navegg
Company Name:     NVG Participações S.A.
Headquarters Location:    Curitiba, Brazil
Date of Establishment:    February 2010 (Established in 2009, but formally incorporated in 2010)
Shareholding Ratio*:     Dentsu Aegis Network 100%   *After acquisition has been completed
Revenue:    BRL 3.75 million (year ended December 2014)
Representatives:     Luciano Juvinski(CEO)
                          Pedro Cruz (Business Development Director)
                          Adriano Brandão (Commercial Director)
Number of Employees:     18
Line of Business:     Analysis and management of online audience data

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