Dentsu announces agreement to acquire a majority stake in JaymeSyfu Group

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 leading creative agency JaymeSyfu Group (Head Office: Makati City; hereinafter “JaymeSyfu”) to acquire a 70% stake in the company, with an option in place that would allow expansion in steps to 100% at a later date.

Founded in 2005, JaymeSyfu Group comprises three agencies: full-service creative agency DM9 JaymeSyfu Inc., digital creative agency Digit DM9 Interactive Inc., and brand activation specialist agency DNA. Recognized internationally for its creativity, JaymeSyfu Inc. was named Campaign Asia-Pacific’s Creative Agency of the Year (Philippines) in 2012 and again in 2013, the year in which the agency won the Philippines’ first Cannes Lions Grand Prix as well as taking top accolades at both D&AD and Spikes Asia. In 2014, the magazine named JaymeSyfu the “Fifth Hottest Creative Agency in Asia,” with its Chairman and Chief Creative Officer Merlee Cruz-Jayme named the fifth highest awarded Creative Director in Asia.

JaymeSyfu will be merged with full-service advertising agency Dentsu Philippines, and rebranded Dentsu JaymeSyfu. Divisions with overlapping areas of expertise will be integrated in order to optimize operations and further strengthen capabilities in the creative, digital and brand activation domains.

In its September 2015 worldwide advertising expenditure forecasts, the Dentsu Group’s media communications agency Carat announced that advertising expenditures in the Philippines grew 12.8% in 2014 and are expected to continue to rise 10.2% in 2015 and 12.3% in 2016. The Philippines is the sixth-largest market in the Asia-Pacific region, after China, Japan, Australia, Korea and Indonesia.

The impact of this transaction on Dentsu’s consolidated financial results for the fiscal year ending December 31, 2015 is expected to be minimal.

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