IPG in talks with TCS to sell its digital marketing agency, R/GA

New Delhi: Interpublic Group is reportedly in discussions to sell its digital marketing agency, R/GA, to Tata Consultancy Services (TCS) of India. This move reflects a broader trend of consulting firms expanding their presence on Madison Avenue.

TCS, following the lead of consulting firms like Accenture and Deloitte, is enhancing its marketing capabilities by acquiring firms that specialise in digital transformation, experiential marketing, creative services, and web and mobile development.

While the deal's terms remain undisclosed, R/GA is estimated to be valued at around $300 million. However, no final agreement on valuation has been reached, and the deal could still fall through.

Additionally, Interpublic and TCS are exploring a broader strategic partnership, potentially collaborating on AI and data projects for mutual clients.

R/GA, known for its work with brands like Verizon, Google’s Android, Samsung, and Coca-Cola, is particularly famous for developing Nike+, a platform that helps runners track their runs.