Ad Firm Dentsu Buys Aegis for $5.1 Billion

Japanese based Dentsu has bought London based Aegis to the tune of $5.1 billion. Dentsu, the 5th largest Ad agency in the world, has struggled to obtain business outside of its native Japan and has sought Aegis in its westward outlook. Dentu’s expansion is motivated by the fact that the Japanese economy has pumped less money into advertising thus creating the need to force the globalization of the domestic ad business. 

Aegis which also owns media buying agency Carat maintains GM as one of its higher profile clients. The merger is the largest since the WPP Group purchased Young & Rubicom 12 years ago.

The focus of the deal seems to be on the expansion into high growth sectors such as digital marketing, whereas the newly formed firm will leave out low growth industries such as televsion advertising to competitors. 

Source: NYTimes Dealbook

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