London-based marketing group Aegis has formed a joint venture with ChinaÔÇÖs Charm, one of the largest brokers to China Central Television.
In a move to significantly boost its operations in China, London-based Aegis will acquire 17.7 per cent of the Chinese firm, as well as forming a joint venture via its existing Chinese arm, Vizeum.
The joint venture between Vizeum and Charm will operate as Vizeum China, which will form the initial 40 per cent of the joint venture's revenues. Charm will then transfer local clients to the joint venture to form the remaining 60 per cent. Charm will move towards 100 per cent Aegis ownership by 2024.
With a blue-chip local client base, Charm will provide the joint venture with domestic expertise, while Vizeum's international reach and client base will create what Aegis is calling a ÔÇ£powerful platform in China with international media agency standardsÔÇØ.
Established in 1995, Charm is a leading television advertising service provider in China and one of the largest brokers to China Central Television (CCTV). CCTV is ChinaÔÇÖs largest national TV network, controlling nine of the country's top 10 television channels.
Jerry Buhlmann, CEO of Aegis Media, said: "This deal significantly extends our Chinese operations and will further transform our prospects in this exciting and dynamic market. China is already the second largest advertising spending market in the world and continues to experience strong growth.ÔÇØ
He continued: ÔÇ£Charm is a great business with a strong management team and a track record of profitable growth. Our partnership will be beneficial to both companies.
ÔÇ£Our international reach combined with Charm's blue chip local client base, strong market knowledge and relationships will create a compelling offering. We are very excited about the potential growth ahead for Vizeum China.ÔÇØ
He Dang, founder and CEO of Charm, who will be chairman of the JV, commented: "We are delighted to have formed this partnership with Aegis Media.
ÔÇ£The combination of Charm's leading market position in television advertising in China and Aegis Media's world-class digital and new media capabilities mean we will be able to provide our clients with best-in-class integrated marketing solutions across key advertising platforms.
ÔÇ£As well as enhancing our offering in China, this new joint venture will give our Chinese clients access to the Aegis global network, bringing them the tools and expertise to extend their brands in markets around the world.ÔÇØ
CharmÔÇÖs gross assets currently stand at $143 million (Ôé¼101 million).
