Huge Announces Acquisition by AEA Investors and Strategic Combination with Hero Digital

Rhea-AI Summary

Huge, a leading experience design and technology business, has been acquired by AEA Investors from Interpublic Group (IPG). The company will merge with Hero Digital, AEA's existing portfolio company, to create one of the largest independent experience transformation businesses globally.

Founded in 1999, Huge has developed digital products and experiences for major clients including Google, McDonalds, NBCU, Nike, and ExxonMobil. The combined entity will leverage both companies' service offerings, capabilities, and global reach to enhance client growth and define the future of intelligent experiences.

Lisa De Bonis, CEO of Huge, and Jay Dettling, CEO of Hero Digital, emphasized the strategic importance of this combination in meeting increasing demand for intelligent experiences. Jim Coleman from AEA will serve as Executive Chairman of the combined company.

Positive

• Creation of one of the largest independent experience transformation businesses globally
• Expanded global reach and broader industry exposure
• Enhanced service capabilities and offerings
• Access to combined portfolio of high-profile clients

Negative

• None.

News Market Reaction – IPG

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+0.82% News Effect

On the day this news was published, IPG gained 0.82%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Two innovative brands joining forces to create a leading independent digital transformation business

BROOKLYN, N.Y., Dec. 5, 2024 /PRNewswire/ -- Huge, a leading experience design and technology business, today announced that it has been acquired by AEA Investors ("AEA"). Huge was acquired from Interpublic Group ("IPG") and, in connection with the transaction, will join forces with AEA's existing portfolio company Hero Digital, forming one of the largest independent experience transformation businesses in the world.

Founded in 1999, Huge has built an impressive legacy of creating compelling digital products and experiences for clients, such as Google, McDonalds, NBCU, Nike, ExxonMobil, and more. Through this strategic combination, Huge will unite with Hero Digital, a similarly customer-centric organization that is committed to delivering innovative, information-driven experience design solutions.

The combined company will leverage Huge and Hero Digital's differentiated service offerings, complementary capabilities, and expanded global reach to further define the future of intelligent experiences, all while delivering enhanced growth for clients.

"This partnership comes at a critical time in the industry, as demand for intelligent experiences that combine innovation with real, measurable impact is increasing," said Lisa De Bonis, CEO of Huge. "We are delighted to come together with Hero Digital, and we are confident that the marriage of our businesses – supported by AEA's expertise in helping innovative companies drive growth – will enable us to continue to transform how clients connect with their customers and aid them in designing human-directed experiences at scale."

"This strategic combination represents a transformative moment for Hero Digital, Huge, and our valued clients," said Jay Dettling, CEO of Hero Digital. "Together, we will leverage our collective creativity and talent to continue providing best-in-class experiences, marketing, and commerce solutions, supporting the growth of our customers and the combined business."

In addition to scale and an enhanced global footprint, bringing together Huge and Hero Digital will establish a combined company that is positioned to serve a broader range of industries and support clients with a wider spectrum of capabilities.

"Huge has an outstanding reputation for delivering digital experiences that drive significant long-term value for its clients, and we've been impressed by their strategic and creative strength and are excited about the leverage this brand will bring us in the market," said AEA Operating Partner Jim Coleman, who will serve as Executive Chairman of the combined company. "With broader industry exposure and an expanded spectrum of capabilities, together, Huge and Hero Digital will be an experience transformation powerhouse that is well positioned for accelerated growth in an increasingly data-driven and digitally led marketplace. We look forward to supporting the combined team as they seek to execute on the exciting opportunity in this space."

Philippe Krakowsky, CEO of IPG, added, "We're pleased for the team at Huge and look forward to seeing the next phase for this storied digital brand as the company continues its evolution under new ownership."

Houlihan Lokey and Morgan Stanley acted as financial advisors and Willkie Farr & Gallagher LLP provided legal representation to IPG and Huge.

About Huge
Huge is a design and innovation company. We create products and experiences that grow the world's most ambitious companies. We do this by designing experiences for people, not users, and uncovering new sources of growth by leveraging our creative talent, our proprietary platform LIVE and unlocking the advantages brought to us by emerging technologies. We believe all experiences should be intelligent and unique to every client. 

About Hero Digital
Hero Digital is a leading independent customer experience company leveraging strategy, design, technology, marketing, and data, to solve the critical digital transformation needs of the Fortune 1000. Hero Digital creates new business growth by transforming the complete digital customer experience, enabling people and brands to prosper. Hero Digital's blended teams help companies like Comcast, U.S. Bank, Zoom, Nagase, UNC Health, and TD Ameritrade Institutional drive business growth across the customer journey.

About AEA Investors
AEA Investors was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA has an extraordinary global network built over many years which includes leading industrial families, business executives, and leaders, many of whom invest with AEA as active individual investors, join its portfolio company boards, or act in other advisory roles. Today, AEA's over 120 investment professionals operate globally with offices in New York, Stamford, San Francisco, London, Munich, and Shanghai. The firm manages funds that have approximately $19 billion of invested and committed capital including the leveraged buyouts of middle market and small business companies, growth capital, and private debt investments. For more information, visit www.aeainvestors.com.

About IPG
Interpublic (NYSE: IPG) (www.interpublic.com) is a values-based, data-fueled, and creatively-driven provider of marketing solutions. Home to some of the world's best-known and most innovative communications specialists, IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe Global, Octagon, R/GA, UM, Weber Shandwick and more. IPG is an S&P 500 company with total revenue of $10.89 billion in 2023.

Media Contacts
Huge:
De'Andra Roberts
droberts@hugeinc.com

Hero Digital:
Challin Baro
Challin.baro@herodigital.com

AEA Investors:
Kaitlin Bilby
(212) 845-4307
Media@aeainvestors.com

Joele Frank, Wilkinson Brimmer Katcher
Kate Thompson / Erik Carlson / Madeline Jones
(212) 355-4449

IPG:
Tom Cunningham
(212) 704-1326

View original content:https://www.prnewswire.com/news-releases/huge-announces-acquisition-by-aea-investors-and-strategic-combination-with-hero-digital-302323974.html

SOURCE Huge

FAQ

Who acquired Huge from IPG in December 2023?

AEA Investors acquired Huge from Interpublic Group (IPG) in December 2023.

Which company will Huge merge with after being acquired from IPG?

Huge will merge with Hero Digital, an existing portfolio company of AEA Investors.

Who will serve as Executive Chairman of the combined Huge and Hero Digital company?

Jim Coleman, AEA Operating Partner, will serve as Executive Chairman of the combined company.

What major clients has Huge worked with before the acquisition from IPG?

Huge has worked with major clients including Google, McDonalds, NBCU, Nike, and ExxonMobil.