Dentsu Aegis Network has signed a definitive agreement to acquire a majority stake in Brazil’s NBS advertising agency. Terms weren’t disclosed but the Dentsu unit said that completion of the acquisition is subject to Brazilian regulatory approval as well as the satisfaction of other unidentified but “customary” closing conditions.
Brazil, host to the 2014 World Cup, is seen as a high-growth advertising market by many in the industry. In its recent ad spending forecast, for example, ZenithOptimedia predicted that Brazil would be a top-5 contributor to growth over the next three years, adding $3.8 billion in new spending during that time.
“Brazil is one of our key priorities and the acquisition of NBS is a wonderful build on our portfolio of innovative and successful agencies,” said Nigel Morris, CEO of Dentsu Aegis Network, Americas and EMEA. “We really admire the work, the people and the management at NBS and we are very excited at the possibilities we have together locally and globally.”
NBS, a full-service shop, is the 14th largest advertising agency in Brazil, based on billings, according to Latin American ad research firm Ibope Monitor.
NBS (which stands for No Bullshit, really) was established in 2002 and employs more than 380 staff across its multiple offices in Brazil including Rio de Janeiro and Sao Paulo. The agency has a portfolio of clients spanning various industry sectors, including Bob’s (food retail), BomNegócio.com (online), Coca-Cola (Crystal water and i9), CCAA (education), O Boticario (cosmetics), Oi (telecom), BR Distribuidora and Petrobras (energy).
DAN said the acquisition would strengthen its full-service footprint in Brazil, which includes O AgenciaClick Isobar, Age Isobar, LOV, Dentsu Brazil, iProspect, Amnet and Copernicus. The acquisition will grow its Brazilian team to more than 1000 staffers and approximately 100 clients.
Cyd Alvarez, NBS CEO, said, “We were one of the last Brazilian independent agencies in the market, however as part of Dentsu Aegis Network we now have many new opportunities and capabilities from across the network which we can present to our clients and partners. It is the perfect opportunity to take what we've built so far to the next level.”