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NEW YORK - Interpublic Group (NYSE:IPG), a global provider of marketing solutions currently trading near its 52-week low at $27.40, has sold its subsidiary R/GA to Truelink Capital, a private equity firm. The announcement made today did not disclose the financial details of the deal.
The transaction allows Interpublic to concentrate on its core strategic offerings. "This strategic move allows Interpublic to further sharpen our focus on our core strategic offerings," said Philippe Krakowsky, CEO of Interpublic Group, in a statement released today. According to InvestingPro data, IPG maintains a strong financial position with a Good overall health score and has consistently paid dividends for 15 consecutive years. He also expressed his best wishes to the team at R/GA, "We wish all the great people at R/GA the best of luck going forward."
R/GA has been known as a creative innovation company within the industry. The sale to Truelink Capital, which specializes in tech-enabled services, marks a new chapter for the company.
Interpublic Group houses some of the most renowned and innovative communications specialists globally. Its portfolio includes Acxiom, Craft, FCB, FutureBrand, Golin, and many others. In 2024, the company reported total revenue of $10.7 billion, positioning it as an S&P 500 company.
The press release did not provide further details regarding the impact of the sale on R/GA’s operations or its employees. The information provided is based on a press release statement from Interpublic Group.
In other recent news, The Interpublic Group of Companies, Inc. announced its financial results for the fourth quarter and full-year 2024, revealing a performance that fell short of expectations. The company reported adjusted earnings per share (EPS) of $1.11, missing the forecasted $1.17, and actual revenue of $2.43 billion, which was below the expected $2.53 billion. Despite the overall revenue decline, Interpublic achieved a modest full-year organic growth of 0.2%. The company also revealed plans for a merger with Omnicom, expected to close in the second half of 2025, which is anticipated to enhance market capabilities.
The earnings miss was accompanied by a decline in organic revenue of 1.8% for the quarter, although Latin America showed a significant organic revenue growth of 10.4%. Interpublic’s adjusted EBITDA margin for the quarter was 24.3%, while the full-year margin stood at 16.6%. The company returned $727 million in capital to shareholders over the year, despite suspending share repurchases in the fourth quarter due to the pending merger. Analysts from firms like JPMorgan and Barclays (LON:BARC) have been inquiring about the strategic benefits of the merger and the company’s restructuring plans.
Looking forward, Interpublic has set a target for a 1-2% organic revenue decrease in 2025 while maintaining the adjusted EBITDA margin. The company is navigating challenges in the macroeconomic environment and anticipates significant revenue phasing challenges in the first half of 2025. CEO Philippe Krakowski emphasized the growth potential in the healthcare sector, despite some account losses, and highlighted the strategic benefits of the upcoming merger with Omnicom.
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