NEW YORK Interpublic Group has acquired Translation Consultation + Brand Imaging, a three-year-old shop led by former Interscope Records executive Steve Stoute.
IPG is believed to have paid $10-15 million in cash for the New York consultancy. Translation has estimated revenue of $5-10 million and employs about 45 staffers, according to sources.
The deal, which had been expected [Adweek, July 16], gives IPG a branded entertainment specialist that shares a major client in General Motors and has ties to the music industry and urban culture. Translation, meanwhile, will gain access to IPG's hundreds of clients, with an opportunity to expand its operation.
"We look forward to bringing Translation's extensive knowledge and understanding of the marketplace to IPG's vast network of marketing companies," said Stoute, in a statement. "Both companies will have a better ability to develop relationships with leading global brands seeking to reach broader and more diverse audiences."
Translation will operate as a stand-alone unit and continue to be led by Stoute, the company's founder and chief creative officer, said IPG, which declined to discuss terms of the deal.
Since last year, Translation has worked primarily on GM's Chevrolet brand in an effort to contemporize it and make it more popular among younger, urban trendsetters.
"In today's world of fragmented media, niche marketing is more important than ever," said IPG CEO Michael Roth. "All consumers, especially the youth market, have unprecedented options when it comes to media and how they interact with our clients. Under Steve's leadership, Translation has built meaningful engagements between clients' brands and this hard-to-reach audience."