BEIJING—Edelman is restructuring in China, merging the bulk of its Pegasus operation with its flagship agency and hiving off a separate agency to focus on experiential marketing.

The move sees local subsidiary Pegasus Communications merge with Edelman to consolidate consumer and digital marketing capabilities alongside the main agency's existing corporate, issues management and public affairs strengths.

Pegasus' event marketing services will be housed within Pegasus Activation, a new agency that is headed by managing director Leigh Chang. 

The restructuring means the Daniel J Edelman (DJE) China holding group will comprise four firms: Edelman for full-service PR, Edelman Digital for digital and social content, Zeno for consumer marketing and Pegasus Activation for experiential.

“At the same time this structure will allow us to increase our partnership with the chief marketing officers of some of our biggest clients,” said DJE China CEO Steven Cao.

Edelman APACMEA CEO David Brain noted that the new structure would also help broaden the agency's talent base and career development opportunities.

Edelman acquired local firm Pegasus, co-founded by Cao, in 2007.