IPG's Hill Holliday and Deutsch New York Acquired by Up-and-Coming Marketing Services Provider
IPG sells Hill Holliday, Deutsch New York to marketing services upstart, while maintaining an affiliate relationship This move comes as IPG addresses challenges posed by the tech downturn
Article Brief:
Attivo Group, a marketing services network based in New Zealand, has acquired creative agencies Hill Holliday and Deutsch New York from Interpublic Group (IPG), as stated in a press release.
Both agencies will retain their current leadership and names, maintaining an affiliate relationship with IPG and allowing access to some of the ad-holding giant’s resources. The acquisitions will expand Attivo’s U.S. presence. Attivo had previously acquired IPG’s 303 MullenLowe in Australia and had invested in Mediahub Australia. However, the acquisition of Hill Holliday and Deutsch New York by IPG indicates a larger shift in agency M&A that may impact 2024.
Article Insight:
IPG kicked off the new year with a bang by offloading a pair of renowned agency brands to the relatively new player Attivo, which has primarily focused on Australia and New Zealand since its establishment in 2020. The arrangement ensures that Hill Holliday and Deutsch New York maintain an affiliate connection to their former parent, indicating that IPG is becoming more determined to streamline its portfolio in the wake of recent growth challenges. This move may establish a precedent for other advertising conglomerates contending with a more competitive market for client spending and increased pressures to simplify their offerings.
In a volatile economy with ad spending increasingly favoring digital, creative shops such as Boston-based Hill Holliday and Deutsch New York, acquired by IPG, have faced significant challenges. Deutsch New York recently laid off 41 employees, while IPG-owned Deutsch LA continues to operate as a separate business unit. Despite a surge in demand for digital transformation expertise in the early stages of the pandemic, IPG and its digital specialists, R/GA and Huge, have been impacted by staff cuts, executive departures, and restructurings due to the recent tech rout and inflationary pressures. Additionally, IPG missed analyst estimates on revenue and profit in Q3.
Acquiring Hill Holliday and Deutsch New York significantly enhances Attivo's presence in the U.S. Led by Cam Murchison, the company also owns Harvey Cameron, Farrimond, Gorilla Studios, Rhubarb Lane and Rainmakers. Murchison commended Hill Holliday and Deutsch New York for their alignment with Attivo's "entrepreneurial spirit and challenger mindset" in a statement.
