Dentsu Aegis Network has signed a definitive agreement to acquire Dwi Sapta Group, the number one local advertising media agency in Indonesia. The multi-brand acquisition will add significant scale to the network’s resources and synergies, further strengthening Dentsu Aegis Network Indonesia’s position in the market.
Founded in 1981, Dwi Sapta Group is the leading and largest independent advertising and media business in Indonesia with over 400 staff. Its full-service offering includes advertising, media, PR, digital and activation. Joining forces with the network will be two media agencies Dwi Sapta Media and Main Media, two creative agencies Dwi Sapta IMC and Main Ad, a digital agency Inexus, a PR agency Dwi Sapta PR and an activation agency Bee Activator.
Dwi Sapta Group currently services around 150 brands, many of them iconic Indonesian clients which have been with the company for over a decade such as Indofood – Indonesia’s largest food manufacturer, Mayora – one of the largest FMCG businesses in the country, and Kalbe Pharma – the biggest local pharmaceutical company.
Founder & CEO of Dwi Sapta Group Adji Watono, and Maya Watono, Managing Director of Dwi Sapta Group, will join the leadership team of Dentsu Aegis Network Indonesia and report to Harris Thajeb, CEO Dentsu Aegis Network Indonesia. Mr Watono will continue to run the board of Dwi Sapta Group as Chairman and Maya will be promoted to CEO of Dwi Sapta Group.
Dick van Motman, CEO of Dentsu Aegis Network Southeast Asia, said, “Obviously Indonesia, with its favourable demographics, rapid urbanisation and significant growth levels both in GDP and adspend, is a priority market for us. And whilst looking at how to increase our commitment to this market, one cannot get around the formidable Dwi Sapta Group, built by Pak Adji and his family. Joining forces made a lot of sense, given the additions it would bring in talent, clientele and service, helping us in our quest to be sufficiently scaled and substantially differentiated. What I particularly like is the strong local flavour of the talent and client base it adds to us. Together with our international network, it provides strong synergies and makes it a truly transformative step for our clients, Dentsu Aegis Network Indonesia and the industry as a whole.”
Harris Thajeb, CEO of Dentsu Aegis Network Indonesia, said: “Dwi Sapta is the largest independent group in the country with full service agency capabilities and a deep understanding of the Indonesian market. Their clients are mainly from the FMCG, BFSI and pharmaceutical industries, which are key growth industries in the Indonesian economy with robust domestic consumption.
“Pak Adji is a highly regarded leader in the Indonesian advertising and media industry. His achievements and breakthrough innovations have been bold and impressive, and his belief to serve the best and commitment to high integrity are clearly reflected in his business principles. We are very much looking forward to working with him, Maya and the team,” he added.
Adji Watono, CEO of Dwi Sapta, said: “Many of today’s major local clients are exporting their products abroad and require a global network to better support their business agenda. Joining Dentsu Aegis Network will allow us to tap into the innovative tools, global resources and synergies to drive our growth regionally. It is also the first global communications group born out of Asia. There is a strong cultural fit and we are eager to embark on this journey together.”
The deal is anticipated to close in H1 2017 and will mark one of the biggest mergers in the history of Indonesia’s advertising industry.