Interpublic Completes Two Major Transactions in Key Growth Market
Increasing Stakes with Powerful, Long-Term Partners Further Strengthens Leadership Position in India
NEW YORK--(BUSINESS WIRE)--July 31, 2007--The Interpublic Group (NYSE: IPG) announced today that it has concluded its second major transaction in India, purchasing the remaining equity in FCB Ulka. Earlier this month, the company announced that it had acquired the remaining equity in Lowe Lintas India.
This past week, Interpublic Group completed its acquisition of FCB Ulka by buying out the remaining 49% equity in the company, which had been a joint venture of FCB and Ulka Advertising. Ulka, founded in 1961, has been a top four agency in the region for the last 25 years. It currently has 650 employees across its six Indian offices. The purchase follows the merger of the two Interpublic agencies Draft and FCB last year. The acquisition will give the new network, Draftfcb, a strengthened presence in the region. The agency, which will be renamed Draftfcb Ulka, creates award-winning work for clients like Tata Motors, Tata Teleservices, Tata Consultancy Services, Zee TV, Amul, Hero Honda and Whirlpool. In a first for a global marketing communications network, the India office will serve as the network's hub for Asia Pacific and Africa.
As announced earlier this month, Interpublic Group also successfully completed the deal to fully integrate Lintas India Private Limited into the Lowe Worldwide network by purchasing the remaining 51% equity in the firm. The action extended an almost 40-year partnership between Lintas India and Interpublic, who together built one of India's leading integrated communications groups.
"India is the world's second most populous country and one of the world's fastest growing economies. It is also one of the most important advertising markets in Asia, with an educated, world class talent pool, especially in technology and professional services," said Michael I. Roth, Chairman and CEO of Interpublic. "As a result, many of our global clients are looking for partners that have depth of talent and capabilities in this key market. Both FCB Ulka and Lintas India have developed lasting relationships with the area's most important marketers and have built out the full range of marketing capabilities to service them. We also have strong leadership and talent in place at both companies. These two transactions solidify our foothold in the region and give us an increased presence as the Indian market continues to develop and to grow."
Interpublic is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draftfcb, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM Worldwide, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Carmichael Lynch, Deutsch, Hill Holliday, Mullen, The Martin Agency and R/GA. For more information, please visit www.interpublic.com.
CONTACT: The Interpublic Group of Companies
Philippe Krakowsky, 212-704-1328
Jerry Leshne, 212-704-1439
SOURCE: The Interpublic Group