After years of ardent wooing, high-profile independent agency Deutsch of New York has fallen into the outstretched arms of Interpublic. Although the value of the all-stock deal has not been disclosed, it is thought to be well above Deutsch’s revenue of $133 million last year.
Commented Donny Deutsch, chairman and chief executive who owns 85% of the company his father founded: “It's the right time with the right partners. This was a deeply thought-out decision because we've been independent our whole life. But it's the natural next step, next challenge, next level for us”.
Deutsch is known for its attention-grabbing campaigns, such as its ads for Ikea which featured a gay male couple, a first in US national advertising.
However, the marriage reflects a need for global expansion. “Almost every client we're winning and talking to now has global needs,” said Deutsch, “We want to take this brand and really see what legs it has”.
Deutsch’s billings last year were $1.5 billion, with clients including Domino’s Pizza, Mitsubihi, Pfizer, Tommy Hilfiger and Ikea.
News source: New York Times