Dentsu Group acquires 100 per cent stake in Merkle
Dentsu Aegis Network has accelerated the purchase of 100 per cent Merkle shares ahead of the 2021 buyout date having now signed the complete ownership agreement.
This allows the multinational media and digital marketing communications company to secure the expertise of key personnel including senior management team while allowing the company to deploy key Merkle workforce across Dentus Aegis Network’s global offices. This while strengthening the company’s ability to offer clients integrated solutions across media, creative and customer relations.
Before the recent full acquisition, Dentsu held 66 per cent stake in Merkle with an option to buy the remaining 34 per cent rights in the third quarter of 2021. Even with the 100 per cent ownership, the initial agreement allows Dentus to make payments at the third quarter of 2021.
Toshi Yamamoto, President and CEO, Dentsu Group Inc: “Today’s announcement is significant on many levels as we fully integrate Merkle into Dentsu Aegis Network. At a time of considerable uncertainty, this agreement provides clarity to our employees, clients and stakeholders. Merkle are the market leaders in data, analytics and CRM and this accelerated integration will help to further future-proof the business, enabling revenue growth and improving operating margins globally. “Merkle represents the highest growth area of the overall business. For our clients, the acquisition has already been transformative, positioning us as world leaders in delivering fully integrated services and solutions across the marketing mix, alongside our Media and Creative offerings, helping our clients to win, keep and grow their best customers.”
The announcement comes after the confirmation of Wendy Clark’s appointment as the new Global CEO of Dentsu Aegis Network now in charge of delivering integrated client solutions across Creative, CRM and Media. The accelerated acquisition of Merkle and Wendy’s appointment rubberstamps the ambitions of Dentsu Aegis Network to deliver its long-term growth plans against a robust strategy in order to become the strongest integrated network globally.
David Williams, Founder & CEO, Merkle & Chairman, Dentsu Aegis Network, Americas: “Today’s announcement is a positive step in our full integration solidifying the future of the team as central to Dentsu Aegis Network’s strategic ambitions. It provides us all with materially more flexibility to deliver integrated solutions for our clients, working alongside our talented colleagues across DAN’s Media and Creative offerings. In addition, the economics of Merkle are now fully linked to Dentsu’s thus empowering us as ‘one dentsu’ to move with agility as we emerge from the challenges of coronavirus, together."
In the recent past, Dentsu Aegis has had its eyes trained on acquisition of high performance and relevant businesses globally in high growth areas including data, brand commerce, customer experience, performance marketing and social & mobile. As the most acquisitive agency group DAN has welcomed over 177 agencies in the last six years, bolstering capability and focus on client delivery. Most notably, the Merkle acquisition placed DAN as the market leader for data, analytics and CRM.
Merkle has positioned itself as a data-driven, technology-enabled performance marketing agency with a core strength focused on CRM and maximizing the value of clients’ customer portfolios. It works with world-class brands like Dell, T-Mobile, Samsung, GEICO, Kimberly-Clark, Sanofi and NBC Universal and employs more than 9,000 people across 56+ locations worldwide.
The Merkle acquisition was the largest industry deal in 2016, and at that time Merkle was the largest independent US based data, analytics, CRM and marketing performance agency. Merkle’s revenue has almost doubled in size since the acquisition in 2016.]