DAN Brings Forward Full Acquisition of Merkle

Marcoms group Dentsu Aegis Network (DAN) has brought forward the acquisition of the remaining shares in US-based data-driven performance marketing agency Merkle. According to reports, DAN has paid about $108m (£86.4m) to buy those shares from Merkle's staff and shareholders.

Columbia, MD-based Merkle, which employs more than 9,000 employees at its 56+ offices worldwide, uses its skills in technology and analytics to understand consumers and drive people-based marketing strategies. In 2016, DAN acquired 66% of Merkle shares for an estimated $1.5bn, with an option to buy the remaining 34% in Q3 2021. Since the acquisition in 2016, Merkle's revenue has almost doubled.

DAN says the decision to bring the full purchase forward secures the expertise and knowledge of Merkle's senior management team; strengthens DAN's CRM line of business and the group's ability to offer clients integrated solutions across creative, CRM and media; and allows the deployment of key Merkle talent to global roles across DAN. As per the initial agreement, payment will still be made in Q3 2021; and according to Campaign magazine, as part of the deal, Dentsu has granted Merkle founder and CEO David Williams (pictured), along with a further 24 senior execs, shares totalling about $60m in a long-term retention scheme.

Toshi Yamamoto, Dentsu Group Inc. President and CEO and Acting Executive Chairman and CEO of DAN, comments: 'At a time of considerable uncertainty, this agreement provides clarity to our employees, clients and stakeholders. Merkle is the market leader in data, analytics and CRM and this accelerated integration will help to further future-proof the business, enabling revenue growth and improving operating margins globally. Merkle represents the highest growth area of the overall business'.

The announcement comes shortly after the confirmation of DDB Worldwide CEO Wendy Clark's appointment as the new Global CEO of Dentsu Aegis Network. She will take up the position in September.

Web sites: www.dentsuaegisnetwork.com and www.merkleinc.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.