This is big news for the US search market and will have a great, positive impact in EMEA also.
The Wall Street News reported yesterday:
“Dentsu Inc. is in talks to acquire Innovation Interactive Inc., a New York digital-advertising and marketing firm, according to a person familiar with the matter, as Japan’s largest ad company seeks to reduce its reliance on a declining home market.
Innovation Interactive, which owns digital-ad agency 360i and Internet-search marketing firm SearchIgnite, has about 300 employees. It has worked for companies such as E-Trade Financial Corp., Reckitt Benckiser Group PLC and General Electric Co.’s NBC Universal.The deal under discussion is valued at roughly $200 million, the person familiar with the matter said. In 2009, Innovation’s revenue was about $69 million, according to the person.
Since coming up short on Razorfish, Tatsuyoshi Takashima, Dentsu’s president and chief executive, has been outspoken about his desire to find new acquisition targets, as Dentsu faces falling advertising spending in traditional media in Japan. The company, whose clients include Toyota, Honda, Hitachi and Sony, generates 8.7% of its net sales overseas. It recently said it aims to boost that figure to at least 12% by 2013. “
Today’s official press release states;
” Dentsu Inc. (President & CEO: Tatsuyoshi Takashima; Head Office: Tokyo; Capital: 58,967.1 million yen) announced today that its consolidated subsidiary Dentsu Holdings USA, Inc. (President & CEO: Tim Andree; Head Office: New York City, NY) has acquired Innovation Interactive LLC, a leading provider of global services and technology for search marketing, social media and audience targeting. Innovation Interactive will become a wholly-owned subsidiary of Dentsu Holdings USA.
Innovation Interactive consists of three operating units: 360i, an award-winning digital marketing agency; SearchIgnite, a leading paid search management technology; and Netmining, an audience optimization platform. The company, with 9 offices in 4 countries, will continue to operate under the leadership of co-CEOs Will Margiloff and Bryan Wiener, who will report to Tim Andree, President & CEO of Dentsu Holdings USA, Inc. and an Executive Officer of Dentsu Inc.
With Innovation Interactive’s industry-leading agency solutions and proprietary digital technologies, the Dentsu Group will be able to bring enhanced integrated marketing solutions to its clients which include a roster of some of the world’s best-known, blue-chip brands. Innovation Interactive’s clients will now have the benefit of Dentsu’s extensive global resources.
“We are pleased to have the strong management team and outstanding talent and technology of Innovation Interactive join the Dentsu Global Network,” said Dentsu President & CEO Tatsuyoshi Takashima. “This acquisition is continuing evidence of our determined pursuit of innovation in the digital and global arenas.” ”
Update:
Dentsu Acquires 360i, Taking a Big Digital Shop off the Table
NEW YORK (AdAge.com) — If you’re looking to acquire a U.S. digital agency of scale, the pool of prospective acquisitions just got a bit smaller.
The U.S. arm of Japan’s biggest ad-agency network, Dentsu Holdings USA, has acquired New York-based Innovation Interactive, which owns digital agency 360i, search firm Search Ignite and analytics and targeting practice Net Mining. And that means there’s one less digital agency of scale on the market.
“I think digital is where the growth is right now, so if you want a major presence in U.S., there are a smaller number of agencies out there,” said Seth Alpert, managing director of New York-based Ad Media Partners, an investment bank that specializes in ad and marketing deals.
Read the full article here : http://adage.com/u/8fW3Sb
