DAN acquisition is “Historic ad shake-up” in Indonesia
The regional press in Asia Pacific described Dentsu Aegis Network Southeast Asia’s most recent acquisition in Indonesia as an “historic ad shake-up”. The Dwi Sapta Group with its 400 employees will join the Dick van Motman lead network in what is one of the biggest deals in ever in Indonesia’s advertising industry. Mumbrella Asia wrote the following:
Dentsu Aegis Network has reached a deal to acquire family-run Indonesian media agency Dwi Sapta Group with the move described as one of the biggest mergers in the history of Indonesia’s advertising industry.
The business, founded in 1981, has more than 400 staff and includes full service advertising, media, PR, digital and activation agencies.
Dwi Sapta’s subsidiaries included in the deal include media agencies Dwi Sapta Media and Main Media, creative agencies Dwi Sapta IMC and Main Ad, digital agency Inexus, PR agency Dwi Sapta PR and activation agency Bee Activator.
Dwi Sapta brands that do not form part of the acquisition include Netracom and NeoPost. They will continue to be run separately by the current management team.
Dentsu Aegis said the deal – for an undisclosed sum – will add “significant scale to the its resources and synergies” and strengthen its footprint in Indonesia.
DAN Southeast Asia chief executive, Dick van Motman, described Dwi Sapta Group as “formidable” and claimed the acquisition would be “transformative” for clients.
“Obviously Indonesia, with its favourable demographics, rapid urbanisation and significant growth levels both in GDP and adspend, is a priority market for us,” he said in a statement.
“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.”
Dwi Sapta Group services around 150 brands, including Indonesia’s largest food manufacturer Indofood, FMCG firm Mayora and pharmaceutical company Kalbe Pharma.
Founder and chief executive Adji Watono and managing director Maya Watono will join the leadership team of Dentsu Aegis Network Indonesia and report to Dentsu Aegis Network Indonesia CEO Harris Thajeb.
Adji Watono will continue to run the board of Dwi Sapta Group as chairman, while Maya Watono will be promoted to CEO of Dwi Sapta Group.
Adji Watono 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.”
Thajeb added: “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.”
The deal is expected to be finalised in the first half of 2017.