Interpublic Group of Companies Inc. (IPG) announced the acquisition of London-based FRUKT Communications, one of the world's leading strategic and creative music and entertainment agencies. The acquisition is primarily conducted by Octagon, Interpublic Group's sports and entertainment leader with a view to strengthen Octagon's industry leadership in the global entertainment marketing business while expanding its global reach.
Octagon’s ongoing investment in the entertainment and music space over the past several years have successfully offered clients a unique blend of Sports formula with consumer insights and creative thinking. This FRUNKT acquisition is anticipated to add tremendously to Octagon's comprehensive entertainment marketing services and fast track the group’s international growth and diversification into broader entertainment sectors. The terms of the transaction were not disclosed.
Established in 2001, FRUKT has been upholding its commitment toward consumer passion for music and entertainment platforms—serving the leading brands such as Coca-Cola, Southern Comfort, Diesel and Starwood Hotels. With this acquisition, FRUKT will immediately start collaborating with the existing Octagon Entertainment Group entities while retaining its unique culture and brand.
The ‘great fit’ pairing of FRUKT team with IPG’s Octagon is anticipated to offer highly-disciplined, strategic and creative counseling and activation services to the corporate sector. With smarter aim and approach of resolving business challenges, the novel partners have planned to leverage the world’s passions for music and entertainment, thereby ensuring growth for both the co founders. The mutual benefits of combining Octagon's global networks across markets and sectors with that of FRUKTS strong heritage of evolution in music will no doubt create ripples across global entertainment marketing campaigns.
New York-based, Interpublic Group of Companies Inc. together with its subsidiaries provides advertising and marketing services worldwide. The company directly competes with its peers, such as Omnicom Group Inc. (OMC), Publicis Groupe SA (PUBGY) and WPP plc (WPPGY). The company’s subsidiary, Octagon, is the world's largest sponsorship consulting practice-- influencing a consumer spending budget of around $3 billion annually in athlete & personality representation sponsorship category. On the other hand, FRUKT is a creative communications agency, engaged in creation and delivery of entertaining ideas that connect people with brands through both live and digital experiences
Our long-term Outperform recommendation for IPG is supported by Zacks #2 Rank, which translates into a short-term Buy rating (1-3 months).
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