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?ÇÖs 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?ÇÖs 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?ÇÖs Publicis. It could also spark discussions about whether WPP?ÇÖs 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?ÇÖs 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.

Global advertising and PR giant WPP has announced the appointment of Philip Jansen to its Board as a Non-Executive Director and Chair-designate. He will join the Board on 16 September 2024 and will succeed Roberto Quarta as Non-Executive Chair of WPP from 1 January 2025.Philip was Chief Executive of BT Group from 2019 to February 2024. Before that he was CEO of Worldpay, the technology-led global payments services group. Previous roles include CEO and then Chairman of Brakes Group, and a variety of senior positions in Sodexo Group. Philip began his career at Procter & Gamble, going on to hold marketing director roles at Dunlop Slazenger and Telewest before moving into general management first at Telewest and then MyTravel. He was a non-executive director of Travis Perkins for four years.Philip led Worldpay through the UK?ÇÖs largest ever fintech IPO, having overhauled its technology infrastructure and invested in areas such as data analytics and cyber security. He also led the merger with US counterpart Vantiv to create Worldpay Inc., the world?ÇÖs largest industry player, handling payments across 146 countries. At BT Group, the global provider of telecommunications and related digital services, he oversaw the strategy to modernise, future-proof and simplify the business.Angela Ahrendts, Senior Independent Director of WPP, said: ?Ç£Philip brings a valuable blend of experience, from leading technology and consumer goods companies to transforming large, complex organisations and creating significant value for shareholders. As a former marketer he understands our business, its clients and the opportunities ahead of us. We are delighted he is joining WPP.?Ç¥Philip Jansen said: ?Ç£Technology is changing the face of commerce, media and communications, and I am very excited to join a company at the forefront of this change. I look forward to working with my fellow board members and supporting Mark and his leadership team as they continue to transform WPP for the future.?Ç¥Mark Read, CEO of WPP, said: ?Ç£On behalf of the Board I would like to thank Roberto for his support for the leadership team and his exceptional contribution during more than nine years with WPP. He has helped to steer the company through significant challenges including the Covid-19 pandemic, overseen the restructuring of our portfolio to return WPP to financial stability, and guided the fundamental reshaping of our offer to meet the needs of modern marketing.?Ç£Philip has deep insight into our industry from his marketing background and roles with technology and consumer goods companies, and I am very happy to welcome him to WPP.?Ç¥ Roberto Quarta, who has served as WPP's chair for nine years, will step down at the end of the year. Under his leadership, the company weathered the COVID-19 pandemic and undertook a significant financial restructuring.Industry analysts believe that Jansen's experience in the technology sector will be particularly valuable as WPP seeks to accelerate its digital transformation and compete effectively in the evolving media landscape.