Dentsu Inc. (Headquarters: Minato-ku, Tokyo, President and Representative Director: Toshihiro Yamamoto, capital: 74,609.81 million yen) announced today that its global business headquarters Dentsu Aegis Network Ltd.*, has reached an agreement to acquire a majority stake in FoxP2 Holdings Proprietary Limited (Head Office: Cape Town; CEO: Charl Thom; hereinafter FoxP2), a leading creative agency in South Africa. The completion of this acquisition is subject to regulatory approval.
Founded in 2005, FoxP2 is a comprehensive creative agency that integrates strategy, design, digital and creative advertising into innovative results for its clients. Through its branches in Johannesburg and Cape Town, it has grown into a company with 83 expert employees.
FoxP2's strength lies in its strategically driven creativity. According to the UK's 'The Gunn Report' 2016 ranking of winners of major advertisement awards, FoxP2 took 2nd place among the list of South African winners. In addition, the agency has garnered a number of prestigious international advertising awards including at this year's UK D&AD Awards and at One Show in the US.
In its 'Network Global Advertising Trends June 2017 Report' Dentsu Aegis Network forecasts stable year-on-year growth of 5% and 5.3% in South Africa's advertising expenditures in 2017 and 2018 respectively.
The impact of this transaction on Dentsu's consolidated financial results for the fiscal year ending December 31, 2017 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 ten global network brands--Carat, Dentsu (Dentsu Brand Agencies), dentsu X, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscope and Vizeum--as well as through several specialist/multi-market brands.
Profile of FoxP2
Company Name: FoxP2 Holdings Proprietary Limited
Location: Cape Town, South Africa, with a branch in Johannesburg
Date of Establishment: Launched in 2005; Current Corporate Organization October, 2011
Shareholding Ratio*: Dentsu Aegis Network 52.05%
*After acquisition has been completed
Revenue: ZAR 61 million (year ended December 31, 2016)
Key Management Personnel: Charl Thom (CEO)
Number of Employees: 83
Line of Business: Creative