Interpublic Group of Cos. is exploring a possible sale of R/GA, and TCS Interactive is the front-runner to acquire it, according to six people close to the situation.
Other holding companies and consultancies have also taken a look at acquiring R/GA, multiple sources confirmed. A strategic partnership, rather than an outright sale, is also on the table, according to a person close to the deal.
TCS declined to comment and IPG said it does not comment on rumors and speculation.
The potential sale of R/GA would mark the latest example of IPG divesting its agencies. The holding company has also been merging and shutting some of its agencies in an attempt to simplify its structure. Some of R/GA’s biggest clients include Nike, Verizon and Google.
Acquiring R/GA would mark a major move for TCS Interactive, an Indian-based business looking to expand its presence, especially in the U.S.
Led in part by former Droga5 CEO Andrew Essex, TCS Interactive is the digital services business of Tata Consultancy Services, one of the world’s largest internet technology and consulting companies.
TCS Interactive, the company’s digital marketing, transformation and user experience unit, posted $2.8 billion in revenue last year, according to Ad Age’s Agency Report, which ranked the entity as the 13th largest agency company globally.