The deal will strengthen the Japanese network’s capabilities in Malaysia’s digital advertising market, and the two firms will also target southeast Asia with their digital advertising solutions.
Japan-based network Hakuhodo has acquired an 80% stake in Malaysian independent digital agency Kingdom Digital Solutions. The terms of the deal weren’t disclosed.
Kingdom Digital, founded in 2007, has 156 employees and will now become a subsidiary of Hakuhodo. The Japanese network has worked with Kingdom Digital previously, and this acquisition will strengthen its capabilities in Malaysia’s digital advertising market, the companies stated. The two firms will provide solutions to local, multinational, and Japanese clients in the ASEAN market.
Kingdom Digital provides digital campaigns, social media and content marketing and digital creative automation, to clients in Malaysia and ASEAN. The agency has won Malaysia Independent Agency of the Year (Gold) at Campaign’s Agency of the Year 2021.
This deal will help Kingdom Digital “realise and speed up our ASEAN expansion ambitions, tapping into Hakuhodo’s regional presence to be able to deliver multinational work for our clients and brands,” noted Vin Chinnaraja, chairman of Kingdom Digital. This deal would allow Kingdom Digital to combine Hakuhodo’s creativity and sei-katsu-sha insight with its Digital Creative Automation (DCA) platform.
Shuntaro Ito, senior corporate officer, Hakuhodo, and president & CEO, Hakuhodo International said Hakuhodo opened its first overseas office in Malaysia 50 years ago. “I look forward to Kingdom Digital being a leading presence, alongside Hakuhodo Malaysia, in further strengthening our digital capabilities in Malaysia and Asean,” he added.