Advertising Age reported IPG finally pruned R/GA, essentially giving the digital shop its independence back. A buyout group guided by R/GA leaders—and financially supported by a private equity firm—will take the company forward (or at least in different directions, opening the possibility for total failure).
Hard to predict how things will turn out, as IPG claimed R/GA had been a financial drag for years. Then again, IPG has not exactly been advancing in positive ways, and it’s now being acquired by Omnicom.
To compound the chaos, R/GA has experienced seismic shifts in leadership and vision, probably further complicated by dramatic changes in technology.
Time will tell if R/GA is getting a reboot—or just getting the boot.
IPG Sells R/GA To Private Equity Firm In Partnership With Agency Leadership
Truelink Capital will invest $50 million in an innovation fund to support the agency’s efforts
By Brian Bonilla
Interpublic Group of Cos. has completed its sale of R/GA to a management-led buyout group backed by Los Angeles-based private equity firm Truelink Capital. IPG, which had been shopping the digital agency around for over a year, announced the deal Monday morning.
R/GA Global CEO Robin Forbes and Chair and Global Chief Creative Officer Tiffany Rolfe are among those part of the management-led buyout group, according to a joint statement from R/GA and Truelink Capital. R/GA declined to name the other members of the management group. Financial terms of the deal were not disclosed.
The deal comes as IPG prepares to be acquired by Omnicom Group and is planning its own $250 million restructuring.
“This strategic move allows Interpublic to further sharpen our focus on our core strategic offerings,” IPG CEO Philippe Krakowsky said in a statement.
Truelink Capital will invest $50 million in an innovation fund to support the agency’s efforts in generative AI, talent, product development and future acquisitions, according to the joint statement.
“To us, it’s an opportunity to accelerate our world-class creative work through technology and design,” Rolfe said in the statement announcing the sale.
R/GA was founded in 1977 by Bob Greenberg and his brother Richard. It was one of the earliest digital agencies to break out in the advertising industry. Over the years, the agency has made its mark for work with clients such as Nike, Reddit and Verizon. Some of R/GA’s current clients include Google, Nike, Diageo, Eli Lilly, Samsung and TurboTax, for which it created a Super Bowl spot this year.
“Bob’s been a great advocate for this deal—and is excited about where we can take R/GA independently,” an R/GA spokesman said.
R/GA had been a part of IPG since 2001.
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