Dentsu has kicked off the digital acquisition spree that saw more than their share of headlines in India last year. President & CEO, Tadashi Ishii, Head Office – Tokyo announced on May 23, 2012 that its subsidiary in India, Dentsu Media and Holdings India has reached an agreement with venture capital and private equity firm Capital18 and other shareholders of Webchutney Studio to acquire an 80 per cent stake in Webchutney.
Under the terms of the agreement, the company will become a wholly owned subsidiary of Dentsu by 2017. A company statement quoted: “Webchutney is a digital creative agency in India which has won more than 70 awards at industry events and advertising festivals both within India and overseas since its establishment in 1999.”
Post the acquisition, Webchutney will become part of the Dentsu India Group of companies which operate under the umbrella of Dentsu Aegis Network, the Dentsu Group’s global operating unit headquartered in London which oversees all of Dentsu’s business operations outside of Japan.
For Dentsu in India, the development marks another big acquisition. In August 2012, the agency had acquired creative agency TapRoot. Since Webchutney also has many prominent local and global brands as key clients, its addition to the Dentsu India Group will further expand the Group’s client base. Through use of Webchutney’s expertise in digital strategic planning and ideas to provide digital creative solutions, the Dentsu India Group aims to attract long-tail clients, a fast-growing client group in India and neighbouring countries.
The provision of high-quality solutions to clients through collaboration of the diverse capabilities of all the Dentsu India Group companies is expected to contribute to the enhancement of the value of the Dentsu brand. The impact of this transaction on Dentsu’s consolidated financial results for the fiscal year ending March 31, 2014 is expected to be minimal.