Dentsu Aegis Network has signed a multi-brand agreement to acquire Indonesian ad and media agency group Dwi Sapta, with the aim of adding scale to the network’s resources in the market.
The deal will see the network join forces with two media agencies – Dwi Sapta Media and Main Media – two creative agencies – Dwi Sapta IMC and Main Ad – digital agency Inexus, PR agency Dwi Sapta PR and activation agency Bee Activator.
Dwi Sapta Group claims to be the largest independent advertising and media business in Indonesia, with over 400 staff servicing around 150 brands including Indofood, Mayora and Kalbe Pharma.
Dwi Sapta Group founder and CEO Adji Watono and managing director Maya Watono will join the leadership team of Dentsu Aegis Network Indonesia and report to chief executive Harris Thajeb.
Watono will continue to run the board of Dwi Sapta Group as chairman and Maya will be promoted to chief executive officer of Dwi Sapta Group.
“Obviously Indonesia, with its favourable demographics, rapid urbanisation and significant growth levels both in GDP and adspend, is a priority market for us,” said Dentsu Aegis Network Southeast Asia chief executive Dick van Motman.
“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,” added van Motman.
Watono commented that many major local clients are exporting their products abroad and therefore 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,” he said.
The deal, which is anticipated to close in early 2017, will mark one of the biggest mergers in the history of Indonesia’s ad industry.