Interpublic sells digital experiences agency Huge

Interpublic Group has sold Huge, an experience design and technology agency, to private equity firm AEA Investors. 

The financial details of the deal were not disclosed.

The holding group announced the agency would be up for sale, together with RGA, in October this year.

Huge will merge with Hero Digital, another customer experience company owned by AEA Investors. The merger is intended to create one of the largest independent experience transformation firms globally, offering enhanced services and broader global reach.

AEA operating partner Jim Coleman, who will serve as executive chairman of the combined company, said: “Huge has an outstanding reputation for delivering digital experiences that drive significant long-term value for its clients, and we’ve been impressed by their strategic and creative strength and are excited about the leverage this brand will bring us in the market. 

“With broader industry exposure and an expanded spectrum of capabilities, together, Huge and Hero Digital will be an experience transformation powerhouse that is well positioned for accelerated growth in an increasingly data-driven and digitally led marketplace. We look forward to supporting the combined team as they seek to execute on the exciting opportunity in this space.”

Founded in 1999, Huge has worked with brands such as Google, McDonald’s, NBCUniversal, Nike and ExxonMobil. IPG had initially invested in Huge in 2008.

“We are delighted to come together with Hero Digital, and we are confident that the marriage of our businesses—supported by AEA’s expertise in helping innovative companies drive growth—will enable us to continue to transform how clients connect with their customers and aid them in designing human-directed experiences at scale."

Jay Dettling, CEO of Hero Digital, said: “This strategic combination represents a transformative moment for Hero Digital, Huge, and our valued clients. 

“Together, we will leverage our collective creativity and talent to continue providing best-in-class experiences, marketing, and commerce solutions, supporting the growth of our customers and the combined business."

The sale is part of IPG’s ongoing efforts to reorganise its portfolio amid slower revenue growth compared with competitors such as Publicis Groupe and Omnicom. 

Earlier this year, IPG sold Hill Holliday and Deutsch New York to Attivo Group. 

At the same time, IPG continues to invest in growth areas, recently acquiring Intelligence Node, a commerce analytics firm based in Mumbai.

Advisors for the Huge transaction included Houlihan Lokey and Morgan Stanley, with legal support provided by Willkie Farr & Gallagher.

Philippe Krakowsky, CEO of IPG, said: “We’re pleased for the team at Huge and look forward to seeing the next phase for this storied digital brand as the company continues its evolution under new ownership.”