‘In 5 years, there will be a significant increase in revenues for Rage & ADK’
The CEO of the newly rebranded ADK Rage, JRK Rao, speaks to exchange4media about the deal with the Tokyo-based firm, and expansion into Japan
Rage Communications, now known as ADK Rage was recently acquired by the Japanese advertising firm ADK Global. A few months into this rebranding, the CEO of the combined company, JRK Rao, takes us into the details of this rebranding, the deal and the synergies brought on by both the companies.
Rage communications, which was a pioneer in digital advertising, has been in the industry for over 2 decades, while ADK Global, headquartered in Japan, uses conventional methods of advertising for clients in East Asian markets.
When asked details about the deal, Rao says “ADK approached us about maybe three-four years back. They are largely a conventional advertising agency. Geographically it was a very good fit. Their strengths were in East Asia and Japan. 80% of our revenues come from Australia, Singapore and India. There was a geographical fit. Plus, they have a lot of conventional advertising clients, whereas our clients are all digital.
“And it's basically an acquisition where at the moment, they've acquired a significant shareholding. And they have an option in about two, three years’ time to take over the entire company. Okay, in about maybe two- or three-years’ time at which point of time, myself and my fellow shareholders, we will exit as shareholders,” he added.
Rao expects that before the end of the year, the combined company will have a lot of expansion of services to existing clients, basically to large Japanese firms, automobile sector, FMCG and so on.
As a direct outcome of this merger, Rao mentions that the focus for the next three-four years is going to be to offer Rage’s current range of services, which is all technology-driven digital services, in Rage and ADK’s existing markets.
Commenting on the monetary benefit from the merger, Rao says, “I think this is going to be more of a long-term thing. Maybe in the short term, say the next 24 months, there may be an uptake of maybe just about 10-15% over and above the kind of growth that we would have normally encountered anyway. But I expect over if you take a five-year horizon for Rage and ADK, there will be a significant increase in revenues.”
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