Dentsu Inc. completed its nearly $5 billion deal to buy Aegis Group today, and announced the creation of Dentsu Aegis Network, a global operating unit based in London. The new unit will manage all of Dentsu's global business operations outside Japan, and Aegis Media's operations worldwide.
Dentsu Network and Aegis Media will operate as separate entities, the company said. They will report to a Dentsu Aegis Network management team, headed by Tim Andree, CEO of Dentsu network and a Dentsu senior VP. From the Aegis side of the deal, Jerry Buhlmann will be both CEO of Aegis Media and CEO of the new Dentsu Aegis Network.
The deal was announced in July 2012, and approved by Aegis shareholders a month later.
Tokyo-based Dentsu's acquisition of London-based Aegis combines the No. 5 and the No. 8 biggest agency companies in the world. The Ad Age DataCenter ranks Dentsu No. 5, with worldwide revenue of $4.06 billion in 2011. Aegis Group was three slots below Dentsu, following Paris-based Havas and Tokyo-based Hakuhodo DY Holdings, with worldwide revenue of $1.82 billion in 2011.
"This is called the 'closing' of the deal but it really is the beginning," Mr. Andree said. "Our complementary geographic and product portfolios, as well as the strong positive chemistry that is rooted in our shared values, can only result in more and better ways to collaborate and serve our respective clients and their businesses around the world."