Dentsu Announces Agreement to Acquire Digital Agency Flock in Mexico

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March 14, 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 digital  agency Flock Advertising México, S de RL de CV (Head Office: Mexico; hereinafter "Flock") to acquire the company.

Founded in 2009, Flock provides general advertising services in the digital domain ranging from the formulation of advertising strategies, production of advertisements and procurement of media space to social media, performance and data analytics. With 142 employees, it is currently one of the largest digital agencies in Mexico. According to the 2015 AgencyScope survey conducted by the Spanish research firm Grupo Consultores, Flock ranked No. 2 in Awareness among digital agencies. The 360° digital marketing services provided by the agency have earned it a high level of recognition among both Mexican and multinational companies.

Post-acquisition, Flock will be incorporated into Isobar, one of the Dentsu Group's nine global network brands*, and will be rebranded "Flock - Linked by Isobar." The agency will work with other Group companies to accelerate the Group's growth strategy in Mexico, second only to Brazil in terms of scale in the Latin American advertising market.

In its September 2015 worldwide advertising expenditure forecasts, the Group's media communications agency Carat announced that digital ad spend in Mexico grew 22.2% in 2014. Continued high growth is expected, with 21.3% forecast for 2015 and 20.5% for 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.

*Dentsu Aegis Network Ltd., the Dentsu Group's global business headquarters based in London, is expanding the Group's business worldwide through nine global network brands--Carat, Dentsu (Dentsu Branded Agencies), Dentsu media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope and Vizeum--and several specialist and multi-market brands.


Profile of Flock
Company Name:     Flock Advertising México, S de RL de CV
Headquarters Location:    Mexico City, Mexico
Date of Establishment:    December 2009
Shareholding Ratio*:     Dentsu Aegis Network 100%
        *After acquisition has been completed
Revenue:    MXN 68.4 million (year ended December 2014)
Representative:     Sebastián Tonda (CEO)
             Mario Nissan (General Manager)
                       Ana María Barquin (Vice President of Operations)
Number of Employees:     142
Line of Business:     General advertising and communication services in the digital domain


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