Stagwell to acquire ADK Global

Stagwell has announced its intent to acquire ADK Global—an integrated advertising and marketing solutions firm and subsidiary of ADK Holdings Inc.

Headquartered in Japan, ADK Global has offices in 10 markets around the world, with a focus on delivering integrated marketing solutions including branding, creative development, and media planning, alongside digital marketing expertise. ADK Global focuses integrated marketing solutions on local markets, media, and consumers In contrast, ADK Holdings operates as the parent company, overseeing the broader ADK Group's diverse businesses, including advertising, content production, and media planning, with a focus on the domestic Japanese market.

The acquisition does not include ADK Holdings Inc., which will remain independent and operate with a focus on the Japanese marketing, but will continue to maintain a relationship with and support ADK Global via Stagwell.

Marking the first regional acquisition for Stagwell in the Asia-Pacific market, the latest addition is set to expand the network’s regional staff count to over 2,000 team members, spanning agencies and affiliates on the ground in Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. Stagwell's global client roster includes the likes of LG, Shanghai Disney Resort, Google, Dexcom and Adidas, across media, creative, and public relations. Recent wins include Starbucks (Stagwell Anomaly), Panera (72andSunny) and as of October 2024, the global creative and social content remit for Adobe.

Speaking to Campaign, Stagwell chairman and CEO Mark Penn shared the acquisition period will commence immediately, subject to regulatory and local government approvals, and is anticipated to be completed within the next 60–90 days. The ADK Global brand is also expected to remain operative and intact during and post this period and continue to go to market under the same, with Penn sharing that the purpose behind the acquisition is not to dilute the value of the offering, but rather focus on driving alignment between both organisations ’portfolio of clients and go-to-market options. 

“From our point of view, this latest addition completes the global footprint of Stagwell, enabling us to better serve clients. With offices already in China and Singapore, it significantly broadens our reach and adds tremendous value to our network and regional capabilities. It’s going to remain an independent brand and will primarily be associated with the Assembly network. Given the client’s familiarity and affinity with the brand, we want to emphasise that there isn’t much change here. ADK Global is becoming part of the Stagwell network, but we always retain the core essence of the brands that join us.”

Penn also shared that while other partners have also been considered— “we’re always on the lookout for opportunities”—the acquisition conversation with ADK Global began over a year ago.

According to Penn, ADK Global will complement the suite of Stagwell's current capabilities including digital transformation through AI and analytics, creative and content services, performance marketing, data-driven insights, PR and communications strategies. In the APAC region, Stagwell's network includes agencies such as Assembly, Allison+Partners, Forsman & Bodenfors, and Code and Theory.

Campaign understands from Penn that the ADK Global management team is expected to remain in place post-acquisition, though operations will move under the remit of Assembly— Stagwell's global media agency specialising in data-driven media strategy, performance marketing, and programmatic solutions. Any regional integration will be led by Asia-Pacific managing director, Randy Duax, out of the group’s regional headquarters in Singapore.

Speaking of the existing management structure, Penn told Campaign, "I think their [ADK Global] CEO [Yasuyuki Katagi] does an excellent job and has a deep understanding of the company, which is crucial for us to hit the ground running without major disruptions. This deal isn’t about restructuring but about expanding—adding an additional network to enhance our capabilities in the region. It's about blending their strong base of Japanese clients with ours, who seek more global coverage, as the Stagwell name and network continue to grow and strengthen.”

ADK Global CEO, Yasuyuki Katagi

Penn emphasised that the primary changes will not focus on driving cost efficiencies but on integrating the group into the Assembly network for its data and analytics cross-channel value, retaining its CEO and structure, aligning back-office operations with US standards, and fostering collaboration within Assembly’s broader performance network. 

“I believe the concept is clear: The ability to add a co-ordinated network to our existing one significantly simplifies the process of deepening our presence in the region. This allows us to serve more effectively, leveraging a well-established base of clients and operations. With 1,400 to 1,500 people already in place, this is a seamless extension into these markets—and a win-win for both ADK Global and Stagwell.”

Sharing his commentary via press release, representative director, president and group CEO of ADK Holdings, Toshiya Oyama, added, “By leveraging Stagwell's global network, which includes regions in North America, Europe, and Asia, along with their digital-based full services, we will integrate ADK Group’s expertise and personnel to develop our overseas marketing business. This will enable us to provide even more optimal solutions to our client companies, primarily focusing on Japanese clients,” stated “Meanwhile, in the content business, including anime and IP, ADK Group will promote the vision of ‘growing brands and fans,’ and aim to further strengthen its overseas operations by enhancing our business structure.”

The addition of ADK Global follows 11 other acquisitions in 2024 across regions for Stagwell, including Create. Group (MENA), UNICEPTA (Germany), Leaders (Israel), and Team Epiphany (US), as a part of its global expansion strategy.