WPP is nearing an $800 million deal to sell its majority stake in financial communications firm FGS Global to private equity firm KKR. The transaction, expected to be announced alongside WPP’s financial results on Wednesday, would increase KKR’s stake from 30% to around 80%, valuing FGS at about $1.6 billion.
The deal involves WPP selling its 50.5% stake, with the remainder of the shares held by FGS’s partners and management. This move aligns with WPP’s strategy to focus more on technology and data-driven services.
FGS Global, formed from the merger of Finsbury, Hering Schuppener, and Glover Park Group, has around 30 global offices and reported $450 million in revenue last year. KKR’s acquisition is seen as a strategic expansion, potentially delaying FGS’s planned public offering.
This sale is the first major transaction since Philip Jansen became WPP’s chair and comes as WPP seeks to enhance its financial performance and reassess its strategy amidst rising competition.