Advertising conglomerate WPP is on the verge of finalizing a deal to sell its majority stake in financial communications firm FGS Global to private equity firm KKR for approximately $800 million.The announcement is expected as soon as Wednesday, coinciding with WPP's upcoming financial results release, according to Financial Times.The proposed agreement involves WPP selling its 50.5% stake in FGS for around $800 million, thereby valuing the entire communications business at about $1.6 billion. KKR's ownership would increase from roughly 30% to around 80%, while the remaining shares would be held by the firm's numerous partners and management team.Sources emphasized the importance of retaining some equity for partners as a retention incentive. However, they noted that as of Tuesday, the deal had not been officially finalized. Both WPP and KKR declined to comment.FGS Global was established through the merger of London-based Finsbury, Frankfurt-based Hering Schuppener, and Washington DC-based Glover Park Group. The firm operates nearly 30 offices worldwide, serving over 1,600 clients, and generated about $450 million in revenue last year, with earnings before interest, tax, depreciation, and amortization (EBITDA) of approximately $95 million.KKR’s acquisition of FGS is a strategic bet on expanding the business further, with potential exit options either through a sale or public offering in the future.The financial communications sector has seen significant consolidation, as businesses that once operated domestically now seek to offer comprehensive services to top executives, corporations, and financial groups globally.However, not all investments have been smooth. For instance, private equity firm CVC encountered challenges with its 2019 investment in FGS competitor Teneo, following a series of scandals and the abrupt departure of two of its three founders during the pandemic.This sale marks the first major transaction since WPP appointed Philip Jansen as its new chair last week. Jansen, who has extensive experience at BT and Worldpay, is expected to reassess the company’s future strategy.The deal would enhance WPP's financial standing, which has been under scrutiny due to its relative underperformance compared to rivals like France’s Publicis. It could also spark discussions about whether WPP’s share price accurately reflects the value of its diverse businesses, which include media, marketing, PR, and advertising globally.WPP is increasingly positioning itself as a technology-driven company, leveraging artificial intelligence and data-led services to deliver more targeted and efficient campaigns for clients.Those familiar with the discussions indicated that FGS had become seen as less central to WPP’s core operations, which already include major PR firms such as Burson, BCW, and Hill & Knowlton, as well as agencies like Ogilvy that provide PR services.Earlier this year, the Financial Times reported KKR's approach to acquire majority control of FGS. The private equity firm initially acquired about 30% of FGS in a deal valuing Finsbury at nearly $1.5 billion in 2023, with WPP retaining a 50.5% stake and FGS employees holding the remainder.The deal may also postpone plans to take FGS public within the next two years. Goldman Sachs has been advising WPP on the transaction.