The largest Japanese advertising group Dentsu has announced that the company acquired its Russian partner agency, Smart Communications (SC), from Video International (VI) and established Dentsu-Smart. The new joint-venture will be managed by Dentsu through a Dutch holding company where it will own 51 percent.
Dentsu-Smart will be one of the leading full-service advertising agencies in Russia serving Bridgestone, Toyota, Lexus, Sony, and other clients. The new company will have more than 100 employees in Moscow office.
According to business daily newspaper Kommersant, the annual turnover and revenues of Smart were estimated in 2007 at approximately $250 million and $20 million, respectively. Dentsu could have paid over $10 million for Smart, based on a valuation multiple of several times Smart’s estimated annual operating income of $5 million.