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Shanghai, China, 2014/02/10 - Dentsu, Inc. announced that its global headquarters Dentsu Aegis Network Ltd has reached an agreement with the principal shareholders of Verawom (Shanghai), one of China’s leading social creative companies, to acquire the company - Verawom.com. Tokyo: 4324
Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) announced today that its global headquarters Dentsu Aegis Network Ltd. has reached an agreement with the principal shareholders of Verawom (Head Office: Shanghai), one of China’s leading social creative companies, to acquire the company.
Founded in 2009, Verawom (verawom.com) is a pioneer in social media marketing, and currently provides end-to-end social media services to a diverse client base in China, including a number of leading companies. The agency’s creative work has won high acclaim, and it received a total of three Gold awards from the China Advertising Great Wall Awards held in October and the ROI Festival held in November last year.
In order to accelerate the Dentsu Group’s growth strategy in the Chinese digital advertising market, which is showing remarkable growth, Verawom will become part of the Isobar China group and will be referred to as “Verawom Linked by Isobar.” The resulting capacity to provide a reinforced business base and enhanced services in the digital domain will give the Group a competitive advantage in the social media space.
The Group’s media communications agency Carat announced in its worldwide advertising expenditure forecasts in September last year that digital ad spending in China grew 43.7% in 2012, and predicted a high growth rate of around 40% for both 2013 and 2014. The impact of this transaction on Dentsu’s consolidated financial results for the fiscal years ending March 31, 2014 and 2015 is expected to be minimal.
Profile of Verawom
Company Name: Verawom (Shanghai) Digital Marketing Co., Ltd.
Location: Shanghai, China
Date of Establishment: April 2009
Capital: CNY 1,000, 000
Shareholding Ratio*: Isobar Digital Co., Ltd. 100%
*After acquisition has been completed
Gross Profit: CNY 19,621, 000 (year ended December 2012)
Representative: Jie (Jack) Wang (CEO)
Number of Employees: 74
Line of Business: Social media marketing services.