Dentsu acquires analytics & marketing tech solutions firm, Merkle

Dentsu Aegis media and digital marketing communications firm that provides branding, media and marketing services has acquired a major stake in Merkle, a company focused on providing data-driven marketing solution using analytics and marketing technology. According to the agency, the integration will accelerate Merkle’s ability to grow as a global agency and provide new opportunities for the customers and employees of both organizations. The size of the transaction is not disclosed yet but according to a report in Wall Street Journal, it values Merkle at around $1.5 billion. The transaction, which is subject to customary closing conditions, is expected to complete before the end of September 2016. Dentsu Aegis Network is made up of nine global network brands, Merkle will become the 10th member and second largest in its kitty. By signing this definitive agreement Dentsu is looking forward to become a 100 percent digital economy business by 2020 and the addition of Merkle, as the agency states, will accelerate this ambition as well as enhance the Network’s global operations. Jerry Buhlmann, Chief Executive Officer of Dentsu Aegis, said:

Our investment in Merkle is a unique opportunity to bring together two great businesses which have a strong fit in strategic, product, cultural and geographic terms. The growth of the digital economy is one of the few certainties in an uncertain world. Merkle brings a powerful range of data led, fully addressable and real time capabilities. The combination of our two businesses will create a compelling offer in that context for existing and potential clients.

Merkle that claims itself as one of the few providers who can deliver data-driven, analytics-based, technology-enabled marketing solutions to large corporations, helping them improve customer engagement, advance competitive positions and maximize return on marketing. The acquisition will help Dentsu tap into Merkle’s data analytic capabilities for more effective marketing, and lasting customer relationships. The capabilities of Merkle that includes Insights, Decision Science, Measurement and Data Science could be leveraged by Dentsu to help its customers make informed decisions and strategize with data insights. Merkle offers a wide range of services, including data and analytics, marketing technology, digital agency services and consulting. And this merger will complement Dentsu’s existing offer to clients and strengthening its competitive advantage at the forefront of the rapidly growing digital economy. The combination is expected to deliver significant revenue growth opportunities, providing new capabilities and benefits to the clients of both sides. According to Forbes, Merkle is one of Google’s and Facebook’s data partners for to drive their digital advertising operations. David Williams, Merkle Chairman and Chief Executive Officer, said, “As we considered a new investment partner, we sought a fit that would complement our vision, escalate our brand, and provide growth opportunities for our people, while also valuing Merkle’s unique strengths and culture. Becoming a part of Dentsu Aegis Network further strengthens our position and allows us to accelerate our goal of being a world-class global performance marketing agency.” In a blogpost David Williams mentioned that Merkel will continue to operate independently and he will continue to serve as the CEO reporting into the Dentsu Aegis Network board of directors.