Competition board approves the Dentsu Aegis purchase of a majority stake in FoxP2.
The deal, put together by Novitas Capital Advisors, sees Dentsu Aegis broaden its offering in Sub Saharan Africa while at the same time launching FoxP2’s creative expertise to a global market.
“When we first started discussing an international sale with FoxP2, the partners were not sure if selling to a large international advertising network was the right move for their innovative and independent creative agency”, says Novitas co-founder, Bradley Conarroe.
Novitas began the process by undertaking an extensive discovery and exploration journey that saw them reach out to some of the world’s most dynamic and innovative tech, media and design businesses.
“Instead of trying to fit us into the standard way that deals are done in the advertising industry, Novitas came up with an approach tailored for what we wanted”, says FoxP2. “They were able to open doors and engage with decision makers at leading creative, design, talent agencies and consultancies from across the globe, so we could explore all of our options to find the best home for FoxP2.”
“Together with Novitas Capital Advisors, we looked at all of our options. We are convinced that Dentsu is the best fit for our creative culture and offers the greatest opportunity for us to continue producing innovative creative work, but on a bigger stage with global brands,” says FoxP2 ECD, Justin Gomes
The merger allows both parties to expand their offerings while at the same time stay true to their respective visions. This was a very important aspect of the transaction, especially to FoxP2, who wanted to maintain their creative identity and culture of innovation.
“After seeing other agencies’ cultures degenerate from valuing creative quality to chasing earn-outs at all costs once their founders had sold out to corporate networks, we did not want to see this happen at FoxP2,” say the FoxP2 partners. “We recognised that we needed access to a global network if we wanted to take FoxP2 to the next level, but we wanted to do it on our terms. We selected Novitas to help us do that because they understood that we wanted something different”.
“We had been in discussions with Dentsu for some time, but when it got to the point of negotiating a transaction, we required the expert capabilities of Novitas to help us navigate a complex process, and to deliver an outcome that reflected a fair value for our business,” says FoxP2 MD, Charl Thom.
“The possibility of the merger became real when we got Dentsu to see that FoxP2 was more than just a South African acquisition and was actually the perfect fit for their global creative strategy,” says Novitas co-founder, Dana Gordon-Davis. “At the same time FoxP2 really started believing that Dentsu respected and valued their creative ethos.”
“We’re really excited about FoxP2’s next chapter with Dentsu”, says FoxP2 ECD, Andrew Whitehouse. “When we briefed Novitas on what we were looking for in a partner, we pushed the boundaries of advertising into areas like product design, augmented reality, robotics, artificial intelligence and new technologies that will change the way consumers experience brands. In Dentsu, we found our ideal partner and are convinced that together we will be at the forefront of revolutionising the industry.”
And now, with the deal finally approved, the stage is set for this dynamic partnership to deliver even more innovative creativity. Novitas, for one, is excited to see the results.
Further published press releases about the FoxP2 sale to Dentsu Aegis Network: