Interpublic Group of Cos. has sold two of its longtime agencies, Hill Holliday and Deutsch New York, to Auckland, New Zealand-based global marketing services company Attivo Group for an undisclosed amount. 

Attivo, which was launched in 2020, previously acquired 303 MullenLowe Australia from IPG in 2021. Attivo is also invested in Mediahub Australia. The latest acquisition, announced today, marks Attivo’s first investment in the U.S.

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It comes three months after Deutsch New York set plans to lay off an estimated 19% of its staff at the beginning of the year. It also comes six months after Hill Holliday CEO Karen Kaplan stepped down after 41 years at the agency. Deutsch New York had been owned by IPG since 2000, while Hill Holiday was acquired in 1998.

Although the two agencies will no longer report to New York-based IPG, they will still have an “affiliate” relationship with the holding company, according to a statement by Attivo Group. Both agencies will continue to operate with their current leadership, the statement added.

“Since 2020, Deutsch LA and DNY have been operating as separate brands and businesses, so this particular move as relates to DNY is a natural progression in that process, as Deutsch LA continues to be one of IPG’s wholly-owned creative agencies, and we’ll support their ongoing evolution and growth,” IPG’s CEO Philippe Krakowsky said in a statement.

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Deutsch LA will remain part of IPG; similarly, IPG is retaining Hill Holliday Health.

That the two departing agencies are maintaining their names is a “vote of confidence” during a time of “uncertainty for many well-known agency brands,” said Hill Holliday CEO Chris Wallrapp.

“Attivo’s investment in Hill Holliday’s future gives our agency and employees tools to innovate, unique flexibility in how we grow our business, and strategic advantages for our clients,” Wallrapp said.

Deutsch New York can continue using the Deutsch New York name until the end of the year, according to IPG.

“We see this as the best of both worlds as we become part of a new startup, and still maintain our association with IPG, now as an affiliate,” Deutsch New York CEO Val DiFebo added.

This is a significant move for IPG, which has had a rough several quarters, posting an organic net revenue decrease of 0.4% in its third quarter. In the October earnings call, Krakowsky attributed the results to a “decrease in client activity” and under-performance of digital specialist agencies.

Hill Holliday’s clients include Frontier Communications, Valvoline and Point32Health among others. In 2023, Deutsch New York won business with Dr. Praeger’s, Simple Mills and Kenvue’s Band-Aid brand. Its other clients include Galderma, Lactaid and Betway.

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CORRECTION: A previous version of this story incorrectly reported Attivo Group’s relationship with Mediahub Australia.