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Tokyo, Japan, 2012/12/21 - Dentsu, Inc. announced that Dentsu and Digital Garage, Inc. have agreed to form a capital and business alliance through a third-party allocation of Digital Garage’s common shares to Dentsu. Tokyo: 4324
Dentsu, Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Minato-ku, Tokyo; Capital: 58,967.1 million yen) announced today that Dentsu and Digital Garage, Inc. (JASDAQ: 4819; President & Group CEO: Kaoru Hayashi; Head Office: Shibuya-ku, Tokyo; Capital: 6,017.52 million yen) have agreed to form a capital and business alliance through a third-party allocation of Digital Garage’s common shares to Dentsu.
Since the Digital Garage Group holds a significant amount of data through the management of Internet media and provision of e-commerce settlement platforms, and Dentsu (dentsu.com) offers a huge variety of solutions in the digital domain, their strengths are complementary. The purpose of the alliance is to enhance the corporate value of both companies via expanded and innovative services in the areas of digital marketing and business intelligence.
The main objectives of the business alliance are as follows; both companies will provide further details in the future as required.
(1) Discovery of the latest marketing technology in Japan as well as in North America and other international markets; and its commercialization in the Asian market, including Japan.
(2) Promotion of business intelligence and digital marketing business operations by utilizing a variety of data.
A summary of the capital alliance is as follows.
• Number of investment shares: Dentsu will acquire 16,500 common shares of Digital Garage through third-party allocation, which will give Dentsu a 7.00% shareholding ratio in Digital Garage after the transaction has been completed.
• Date of investment: January 11, 2013
• Investment capital: 159,004 yen per share; total investment capital: 2,623.566 million yen.
The impact of this transaction on Dentsu’s consolidated and non-consolidated financial results for the fiscal year ending March 31, 2013 is expected to be minimal.
Profile of Digital Garage, Inc. (garage.co.jp/en)
Capital: 6,017.52 million yen
Location: Daikanyama DG Bldg., 3-5-7 Ebisu Minami, Shibuya-ku, Tokyo.
Representative: Kaoru Hayashi, President & Group CEO
Number of Employees: Non-consolidated basis: 283; consolidated basis: 376 (as of June 30, 2012)
Profile of Dentsu Inc.
Capital: 58,967.1 million yen
Location: 1-8-1, Higashi-shimbashi, Minato-ku, Tokyo
Representative: Tadashi Ishii, President & CEO
Number of Employees: Non-consolidated basis: 7,584; consolidated basis: 22,584 (as of September 30, 2012)