Edelman parent DJE to buy WPP's 21% PRAP Japan stake for $8M
What's the deal? DJE IncDealroom has a profile for this one. Try Dealroom →, the parent company of EdelmanDealroom has a profile for this one. Try Dealroom →, will acquire WPP's 21% holding in Japanese public relations firm PRAP JapanDealroom has a profile for this one. Try Dealroom → for about US$9.77M. The purchase makes DJE the company's largest single shareholder.
Who's involved? PRAP Japan, founded in 1970, is among the country's leading PR firms, with 378 employees and revenue of US$59.1M. WPP has held the stake since 2002; DJE is the parent of the world's largest independent PR firm.
Why now? Japan has become one of DJE's stronger-performing markets in Asia. The group employs more than 50 people there and generated an estimated $8.5 million in fee income last year, up 16%.
What's the endgame? The deal deepens DJE's presence in a market where international PR networks have long struggled against entrenched domestic players. Partnering with an established local firm gives DJE a larger foothold.
The transaction is expected to close by the end of October, subject to required conditions.
The signal: As WPP trims minority holdings, independent networks are moving to consolidate positions in hard-to-crack markets. DJE's move signals a bet that scale through local partnership beats building alone in Japan.
Read more: adtechtoday.com
Image credit: Kabacchi
