Dentsu acquires TAG to grow tech capabilities
By Abimbola Mohammed
Dentsu Group has agreed to acquire TAG Worldwide, a global producer of ads and other marketing content from private equity firm Advent International for an undisclosed sum.
According to Dentsu, “Tag’s digital infrastructure and services will provide high quality content at speed and scale for creative, a scaled personalization engine for customer experience management, as well as add power to media Dynamic Content Optimization.
Founded in 1972 and acquired by Advent International in 2017, Tag will become dentsu’s sixth network brand and will retain the Tag brand “for the foreseeable future.”
The acquisition will add 2,800 people located across 29 countries with one global production hub and ten specialist hubs. Tag’s existing service portfolio is structured around Creative Production, Technology, and Channel Activation.
Hiroshi Igarashi, President & CEO, Dentsu Group Inc., said: “The values that the Tag leadership team have established and nurtured over the past 50 years very much mirror dentsu’s own culture and values, with a shared focus on Social Purpose, DEI and sustainability.”
In the same vein, David Kassler, Global CEO,Tag, added that, “We can’t wait to start this next phase of our journey and couldn’t be happier to be joining the dentsu family. The market is moving incredibly fast towards integrated services – the combination of Tag’s global technology-enabled content production with dentsu’s broader marketing, technology and consulting skills will be tremendously additive for both sets of our wonderful clients.”
Tag utilizes a robust global delivery model to provide clients with scalable solutions and round-the-clock coverage. The model closely mirrors dentsu’s own Networked Talent structure through which clients get the best expertise, networked from wherever it is located, delivered consistently and to the highest levels of quality available across dentsu. It is this combination of technology and people that transcends location and optimizes delivery for clients.
The transaction has been approved by the boards of directors of both companies and is anticipated to close later in 2023 subject to receipt of required antitrust approvals and customary closing conditions. Lazard acted as financial advisor to dentsu in relation to the transaction.
On completion, Tag will represent approximately 3% of dentsu revenues and adds long-term, contracted revenue streams, the company stated.
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