Interpublic Group sells RGA

Interpublic Group has sold RGA to private equity firm Truelink Capital.

After 23 years as part of IPG, the sale will return the creative innovation agency to independence as a privately owned company.

RGA’s global chief executive, Robin Forbes, and its chair and global chief creative officer, Tiffany Rolfe, are two of the global leaders, together with others, who are investing in the company as part of the deal. The global leadership will be unchanged.

Under the deal, Truelink will establish a $50 million (£40 million) innovation fund to invest in new skillsets and talent, as well as acquiring new capabilities, tools and platforms. 

As an independent company, RGA will establish an AI-enabled model to serve clients, "unburdened by the restrictions and overheads of traditional corporate structures", it claimed.

New remuneration models based on outcomes, agile new team structures and scaling up its flexible talent model "RGA Associates" are among the initial changes being implemented.

The shop has established a Strategic Advisory Council to support emerging AI client transformation.

The announcement follows the holding company’s annual results, which detailed a 4,100 reduction in global headcount, with the UK and US being hit the hardest. 

Global staff numbers fell about 7.1% to 53,300 at the end of 2024 versus 57,400 at the end of 2023. Headcount fell 11.3% in the US, followed by 5.8% in the UK. 

IPG, which owns agencies including FCB, Initiative, McCann and UM, said that headcount fell about 5% on an organic basis, which suggests it cut about 2,900 roles.

It is thought IPG’s decision to sell several agencies led to the remaining reduction in headcount of close to 1200 people.

Forbes said: “Today is a landmark moment for RGA, as we enter an exciting new chapter as a private company supported by our new partners at Truelink Capital. This announcement also signals a stark contrast to a wider trend towards consolidation in the agency business. Most agencies will struggle to make the pivot in this new age, especially at a time when they’re operating within complex agency structures, saddled with legacy business models." 

IPG has been holding the digital creative shop for sale, as first reported in June 2024.

Rolfe added: "At RGA, change is a feature, not a bug, and we believe in the power of brands to transform—which is what we do for clients, and now we’re doing it for ourselves.

"The dominant industry narrative around AI has focused largely on efficiency gains in the traditional marketing approach, which is only part of the equation. We are leaning into the creative potential to help brands differentiate themselves and exceed rising customer expectations through new kinds of intelligent experiences that haven’t been possible before."

Forbes joined the business as group managing director in 2014. Rolfe joined in 2018 as chief creative officer in the US. Both are based in the US.

Luke Myers, co-founder and managing partner at Truelink Capital, said: "We see the growth of AI enabled experiences playing an increasingly important role in unlocking value in marketing services. RGA is both designed and perfectly positioned to help seize that new opportunity for clients."

IPG sold Hill Holliday and Deutsch New York in January 2024, and digital experiences agency Huge in December. 

RGA, which was formed in 1977, joined IPG in 2001 when the holding company acquired the agency’s parent company True North Communications.

RGA’s EMEA chief executive Rebecca Bezzina left the shop after serving 10 years in two separate stints. Nick Pringle, EMEA chief creative officer, has been leading the London and German offices in the meantime. 

There is no news on the next EMEA chief as of yet.

The sale is part of IPG’s ongoing efforts to reorganise its portfolio amid slower revenue growth compared with competitors such as Publicis Groupe and Omnicom. 

The holding company is preparing to be acquired by Omnicom and is planning cuts to save $250 million (£200 million), on top of the $750 million in annual synergies. The merger is due to complete by the end of 2025.